10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2022

or

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _____ to _____

Commission File Number: 001-40274

Jackson Financial Inc.

(Exact name of registrant as specified in its charter)

Delaware	98-0486152
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
1 Corporate Way, Lansing, Michigan	48951
(Address of principal executive offices)	(Zip Code)

(517) 381-5500

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of exchange on which registered
Common Stock, Par Value $0.01 Per Share	JXN	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.          Yes ☑ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).     

Yes ☑ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☑	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☑

As of November 3, 2022, there were 83,036,974 shares of the registrant’s common stock, $0.01 par value, outstanding.

TABLE OF CONTENTS

PART I—FINANCIAL INFORMATION
Item 1. Financial Statements
Condensed Consolidated Balance Sheets as of September 30, 2022 and December 31, 2021	2
Condensed Consolidated Income Statements for the three and nine months ended September 30, 2022 and 2021	3
Condensed Consolidated Statements of Comprehensive Income (Loss) for the three and nine months ended September 30, 2022 and 2021	4
Condensed Consolidated Statements of Equity for the three and nine months ended September 30, 2022 and 2021	5
Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2022 and 2021	6
Notes to Condensed Consolidated Financial Statements
Note 1. Business and Basis of Presentation	8
Note 2. New Accounting Standards	10
Note 3. Segment Information	12
Note 4. Investments	18
Note 5. Derivative Instruments	34
Note 6. Fair Value Measurements	38
Note 7. Deferred Acquisition Costs	56
Note 8. Reinsurance	56
Note 9. Reserves for Future Policy Benefits and Claims Payable and Other Contract Holder Funds	58
Note 10. Certain Nontraditional Long-Duration Contracts and Variable Annuity Guarantees	61
Note 11. Long-Term Debt	65
Note 12. Federal Home Loan Bank Advances	66
Note 13. Income Taxes	66
Note 14. Commitments and Contingencies	67
Note 15. Other Related Party Transactions	67
Note 16. Operating Costs and Other Expenses	68
Note 17. Accumulated Other Comprehensive Income (Loss)	68
Note 18. Equity	69
Note 19. Earnings Per Share	71
Note 20. Revision of Prior Period Financial Statements	71
Note 21. Subsequent Events	73
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
Forward-looking Statements - Cautionary Language	74
Available Information	75
Principal Definitions, Abbreviations and Acronyms Used in the Text and Notes to this Report	75
Overview of Management's Discussion and Analysis of Financial Condition and Results of Operations	77
Executive Summary	77
Non-GAAP Financial Measures	79
Key Operating Measures	83
Macroeconomic, Industry, and Regulatory Trends	87
Consolidated Results of Operations	91
Segment Results of Operations	95
Investments	101
Policy and Contract Liabilities	112
Liquidity and Capital Resources	115
Summary of Critical Accounting Estimates	122
Item 3. Quantitative and Qualitative Disclosures About Market Risk	123
Item 4. Controls and Procedures	123
PART II—OTHER INFORMATION
Item 1. Legal Proceedings	124
Item 1A. Risk Factors	124
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	125
Item 4. Mine Safety Disclosures	125
Item 5. Other Information	126
Item 6. Exhibits	127
SIGNATURES
Signatures	128

1

.

PART I – FINANCIAL INFORMATION

Item 1. Financial Statements

Jackson Financial Inc.

Condensed Consolidated Balance Sheets

(in millions, except per share data)

	September 30,		December 31,
	2022		2021
Assets	(Unaudited)
Investments:
Debt Securities, available-for-sale, net of allowance for credit losses of $31 and $9 at September 30, 2022 and December 31, 2021, respectively (amortized cost: 2022 $48,868; 2021 $49,378)	$	41,681	$	51,547
Debt Securities, at fair value under fair value option	2,124		1,711
Debt Securities, trading, at fair value	102		117
Equity securities, at fair value	234		279
Mortgage loans, net of allowance for credit losses of $79 and $94 at September 30, 2022 and December 31, 2021, respectively	11,223		11,482
Mortgage loans, at fair value under fair value option	508		—
Policy loans (including $3,487 and $3,467 at fair value under the fair value option at September 30, 2022 and December 31, 2021, respectively)	4,446		4,475
Freestanding derivative instruments	1,950		1,417
Other invested assets	3,622		3,199
Total investments	65,890		74,227
Cash and cash equivalents	5,331		2,623
Accrued investment income	509		503
Deferred acquisition costs	12,797		14,249
Reinsurance recoverable, net of allowance for credit losses of $10 and $12 at September 30, 2022 and December 31, 2021, respectively	30,796		33,126
Deferred income taxes, net	759		954
Other assets	1,846		928
Separate account assets	185,042		248,949
Total assets	$	302,970	$	375,559
Liabilities and Equity
Liabilities
Reserves for future policy benefits and claims payable	$	16,130	$	18,667
Other contract holder funds	58,174		58,726
Funds withheld payable under reinsurance treaties (including $3,646 and $3,639 at fair value under the fair value option at September 30, 2022 and December 31, 2021, respectively)	23,900		29,007
Long-term debt	2,634		2,649
Repurchase agreements and securities lending payable	27		1,589
Collateral payable for derivative instruments	1,038		913
Freestanding derivative instruments	2,225		41
Notes issued by consolidated variable interest entities, at fair value under fair value option (Note 4)	1,745		1,404
Other liabilities	2,352		2,540
Separate account liabilities	185,042		248,949
Total liabilities	293,267		364,485
Commitments, Contingencies, and Guarantees (Note 14)
Equity
Common stock, (i) Class A Common Stock 900,000,000 shares authorized, $0.01 par value per share and 83,666,942 and 88,046,833 shares issued and outstanding at September 30, 2022 and December 31, 2021, respectively and (ii) No authorized Class B Common Stock at September 30, 2022 and 100,000,000 shares authorized, $0.01 par value per share and 638,861 shares issued and outstanding at December 31, 2021 (See Note 18)	1		1
Additional paid-in capital	6,036		6,051
Treasury stock, at cost; 10,807,076 and 5,778,649 shares at September 30, 2022 and December 31, 2021, respectively	(410)		(211)
Accumulated other comprehensive income (loss), net of tax expense (benefit) of $(1,235) and $194 at September 30, 2022 and December 31, 2021, respectively	(5,718)		1,744
Retained earnings	9,065		2,809
Total shareholders' equity	8,974		10,394
Noncontrolling interests	729		680
Total equity	9,703		11,074
Total liabilities and equity	$	302,970	$	375,559

See Notes to Condensed Consolidated Financial Statements.

2

Jackson Financial Inc.

Condensed Consolidated Income Statements

(Unaudited, in millions, except per share data)

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Revenues
Fee income	$	1,908	$	2,063	$	5,854	$	5,963
Premiums	36		37		105		115
Net investment income	640		837		2,022		2,568
Net gains (losses) on derivatives and investments	1,419		(1,379)		6,891		(1,194)
Other income	19		17		60		70
Total revenues	4,022		1,575		14,932		7,522
Benefits and Expenses
Death, other policy benefits and change in policy reserves, net of deferrals	586		405		2,090		933
Interest credited on other contract holder funds, net of deferrals and amortization	224		209		628		630
Interest expense	29		6		73		19
Operating costs and other expenses, net of deferrals	592		699		1,801		2,090
Amortization of deferred acquisition costs	564		4		2,276		551
Total benefits and expenses	1,995		1,323		6,868		4,223
Pretax income (loss)	2,027		252		8,064		3,299
Income tax expense (benefit)	559		(16)		1,606		515
Net income (loss)	1,468		268		6,458		2,784
Less: Net income (loss) attributable to noncontrolling interests	(11)		62		51		186
Net income (loss) attributable to Jackson Financial Inc.	$	1,479	$	206	$	6,407	$	2,598
Earnings per share
Basic	$	17.38	$	2.18	$	74.39	$	27.50
Diluted	$	16.83	$	2.18	$	71.73	$	27.50

See Notes to Condensed Consolidated Financial Statements.

3

Jackson Financial Inc.

Condensed Consolidated Statements of Comprehensive Income (Loss)

(Unaudited, in millions)

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Net income (loss)	$	1,468	$	268	$	6,458	$	2,784
Other comprehensive income (loss), net of tax:
Securities with no credit impairment net of tax expense (benefit) of: $(323) and $(95), for the three months ended September 30, 2022 and 2021, respectively, and $(1,431) and $(492), for the nine months ended September 30, 2022 and 2021, respectively	(1,978)		(345)		(7,466)		(1,778)
Securities with credit impairment, net of tax expense (benefit) of: $(5) and nil for the three months ended September 30, 2022 and 2021, respectively, and $1 and $1, for the nine months ended September 30, 2022 and 2021, respectively	(18)		—		4		2
Total other comprehensive income (loss)	(1,996)		(345)		(7,462)		(1,776)
Comprehensive income (loss)	(528)		(77)		(1,004)		1,008
Less: Comprehensive income (loss) attributable to noncontrolling interests	(11)		62		51		186
Comprehensive income (loss) attributable to Jackson Financial Inc.	$	(517)	$	(139)	$	(1,055)	$	822

See Notes to Condensed Consolidated Financial Statements.

4

Jackson Financial Inc.

Condensed Consolidated Statements of Equity

(Unaudited, in millions)

											Accumulated
			Additional		Treasury		Shares		Equity		Other				Total		Non-
	Common		Paid-In		Stock		Held		Compensation		Comprehensive		Retained		Shareholders'		Controlling		Total
	Stock		Capital		at Cost		In Trust		Reserve		Income		Earnings		Equity		Interests		Equity
Balances as of June 30, 2022	$	1	$	6,020	$	(371)	$	—	$	—	$	(3,722)	$	7,635	$	9,563	$	747	$	10,310
Net income (loss)	—		—		—		—		—		—		1,479		1,479		(11)		1,468
Change in unrealized investment gains and losses, net of tax	—		—		—		—		—		(1,996)		—		(1,996)		—		(1,996)
Change in equity of noncontrolling interests	—		—		—		—		—		—		—		—		(7)		(7)
Dividends on common stock	—		—		—		—		—		—		(49)		(49)		—		(49)
Purchase of treasury stock	—		—		(39)		—		—		—		—		(39)		—		(39)
Share based compensation	—		16		—		—		—		—		—		16		—		16
Balances as of September 30, 2022	$	1	$	6,036	$	(410)	$	—	$	—	$	(5,718)	$	9,065	$	8,974	$	729	$	9,703
											Accumulated
			Additional		Treasury		Shares		Equity		Other				Total		Non-
	Common		Paid-In		Stock		Held		Compensation		Comprehensive		Retained		Shareholders'		Controlling		Total
	Stock		Capital		at Cost		In Trust		Reserve		Income		Earnings		Equity		Interests		Equity
Balances as of June 30, 2021	$	1	$	5,927	$	—	$	(4)	$	9	$	2,390	$	2,068	$	10,391	$	599	$	10,990
Net income (loss)	—		—		—		—		—		—		206		206		62		268
Change in unrealized investment gains and losses, net of tax	—		—		—		—		—		(345)		—		(345)		—		(345)
Change in equity of noncontrolling interests	—		—		—		—		—		—		—		—		(63)		(63)
Shares sold in connection with demerger	—		1		—		4		—		—		—		5		—		5
Reserve for equity compensation plans	—		—		—		—		$	1	—		—		1		—		1
Balances as of September 30, 2021	$	1	$	5,928	$	—	$	—	$	10	$	2,045	$	2,274	$	10,258	$	598	$	10,856
											Accumulated
			Additional		Treasury		Shares		Equity		Other				Total		Non-
	Common		Paid-In		Stock		Held		Compensation		Comprehensive		Retained		Shareholders'		Controlling		Total
	Stock		Capital		at Cost		In Trust		Reserve		Income		Earnings		Equity		Interests		Equity
Balances as of December 31, 2021	$	1	$	6,051	$	(211)	$	—	$	—	$	1,744	$	2,809	$	10,394	$	680	$	11,074
Net income (loss)	—		—		—		—		—		—		6,407		6,407		51		6,458
Change in unrealized investment gains and losses, net of tax	—		—		—		—		—		(7,462)		—		(7,462)		—		(7,462)
Change in equity of noncontrolling interests	—		—		—		—		—		—		—		—		(2)		(2)
Dividends on common stock	—		—		—		—		—		—		(151)		(151)		—		(151)
Purchase of treasury stock	—		—		(279)		—		—		—		—		(279)		—		(279)
Share based compensation	—		(15)		80		—		—		—		—		65		—		65
Balances as of September 30, 2022	$	1	$	6,036	$	(410)	$	—	$	—	$	(5,718)	$	9,065	$	8,974	$	729	$	9,703
											Accumulated
			Additional		Treasury		Shares		Equity		Other				Total		Non-
	Common		Paid-In		Stock		Held		Compensation		Comprehensive		Retained		Shareholders'		Controlling		Total
	Stock		Capital		at Cost		In Trust		Reserve		Income		Earnings		Equity		Interests		Equity
Balances as of December 31, 2020	$	1	$	5,927	$	—	$	(4)	$	8	$	3,821	$	(324)	$	9,429	$	494	$	9,923
Net income (loss)	—		—		—		—		—		—		2,598		2,598		186		2,784
Change in unrealized investment gains and losses, net of tax	—		—		—		—		—		(1,776)		—		(1,776)		—		(1,776)
Change in equity of noncontrolling interests	—		—		—		—		—		—		—		—		(82)		(82)
Shares sold in connection with demerger	—		1		—		4		—		—		—		5		—		5
Reserve for equity compensation plans	—		—		—		—		2		—		—		2		—		2
Balances as of September 30, 2021	$	1	$	5,928	$	—	$	—	$	10	$	2,045	$	2,274	$	10,258	$	598	$	10,856

See Notes to Condensed Consolidated Financial Statements.

5

Jackson Financial Inc.

Condensed Consolidated Statements of Cash Flows

(Unaudited, in millions)

	Nine Months Ended September 30,
	2022		2021
Cash flows from operating activities:
Net income (loss)	$	6,458	$	2,784
Adjustments to reconcile net income to net cash provided by operating activities:
Net realized losses (gains) on investments	131		(204)
Net losses (gains) on derivatives	(4,362)		1,413
Net losses (gains) on funds withheld reinsurance	(2,660)		(15)
Interest credited on other contract holder funds, gross	628		630
Mortality, expense and surrender charges	(400)		(418)
Amortization of discount and premium on investments	19		40
Deferred income tax expense (benefit)	1,625		544
Share-based compensation	96		60
Change in:
Accrued investment income	(6)		47
Deferred acquisition costs	1,783		(43)
Funds withheld, net of reinsurance	(204)		(609)
Other assets and liabilities, net	(167)		(694)
Net cash provided by (used in) operating activities	2,941		3,535
Cash flows from investing activities:
Sales, maturities and repayments of:
Debt securities	8,959		12,994
Equity securities	54		36
Mortgage loans	1,046		1,243
Purchases of:
Debt securities	(8,861)		(8,290)
Equity securities	(27)		(108)
Mortgage loans	(1,378)		(2,176)
Settlements related to derivatives and collateral on investments	3,109		(3,223)
Other investing activities	(433)		148
Net cash provided by (used in) investing activities	2,469		624

See Notes to Condensed Consolidated Financial Statements.

6

Jackson Financial Inc.

Condensed Consolidated Statements of Cash Flows (continued)

(Unaudited, in millions)

	Nine Months Ended September 30,
	2022		2021
Cash flows from financing activities:
Policyholders' account balances:
Deposits	$	14,235	$	14,649
Withdrawals	(18,716)		(21,590)
Net transfers from (to) separate accounts	3,805		2,068
Proceeds from (payments on) repurchase agreements and securities lending	(1,563)		(794)
Net proceeds from (payments on) Federal Home Loan Bank notes	—		(380)
Net proceeds from (payments on) debt	(784)		2,346
Net proceeds from issuance of Senior Notes	750		—
Debt issuance costs	(7)		—
Disposition of shares held in trust at cost, net	—		5
Dividends on common stock	(151)		—
Purchase of treasury stock	(279)		—
Other financing activities	10		—
Net cash provided by (used in) financing activities	(2,700)		(3,696)
Net increase (decrease) in cash, cash equivalents, and restricted cash	2,710		463
Cash, cash equivalents, and restricted cash at beginning of period	2,631		2,019
Total cash, cash equivalents, and restricted cash at end of period	$	5,341	$	2,482
Supplemental cash flow information
Income taxes paid (received)	$	(2)	$	36
Interest paid	$	48	$	15
Non-cash investing activities
Debt securities acquired from exchanges, payments-in-kind, and similar transactions	$	436	$	303
Other invested assets acquired from stock splits and stock distributions	$	42	$	99
Reconciliation to Statement of Financial Position
Cash and cash equivalents	$	5,331	$	2,482
Restricted cash (included in Other assets)	10		—
Total cash, cash equivalents, and restricted cash	$	5,341	$	2,482

See Notes to Condensed Consolidated Financial Statements.

7

Jackson Financial Inc.

Notes to Condensed Consolidated Financial Statements

(Unaudited)

1. Business and Basis of Presentation

Jackson Financial Inc. (“Jackson Financial”) along with its subsidiaries (collectively, the “Company,” which also may be referred to as “we,” “our” or “us”), is a financial services company focused on helping Americans grow and protect their retirement savings and income to enable them to pursue financial freedom for life. Jackson Financial, domiciled in the state of Delaware in the United States (“U.S.”), was a majority-owned subsidiary of Prudential plc (“Prudential”), London, England, and was the holding company for Prudential’s U.S. operations. As described below under "Other," the Company's demerger from Prudential was completed on September 13, 2021 ("Demerger"), and the Company is a stand-alone U.S. public company.

Jackson Financial’s primary life insurance subsidiary, Jackson National Life Insurance Company and its insurance subsidiaries (collectively, “Jackson”), is licensed to sell group and individual annuity products (including immediate, registered index-linked, deferred fixed, fixed index and variable annuities), and individual life insurance products, including variable universal life, in all 50 states and the District of Columbia. Jackson also participates in the institutional products market through the issuance of guaranteed investment contracts (“GICs”), funding agreements and medium-term note funding agreements. Jackson Financial’s primary operating subsidiaries, in addition to Jackson, are as follows:

•PPM America, Inc. (“PPM”), is the Company’s investment management operation that manages the life insurance companies’ general account investment funds. PPM also provides investment services to other former affiliated and unaffiliated institutional clients.

•Brooke Life Insurance Company (“Brooke Life”), Jackson’s direct parent, is a life insurance company licensed to sell life insurance and annuity products in the state of Michigan.

Other wholly-owned subsidiaries of Jackson are as follows:

•Life insurers: Jackson National Life Insurance Company of New York (“JNY”); Squire Reassurance Company LLC (“Squire Re”); Squire Reassurance Company II, Inc. (“Squire Re II”); and VFL International Life Company SPC, LTD;

•Registered broker-dealer: Jackson National Life Distributors, LLC ("JNLD");

•Registered investment adviser: Jackson National Asset Management, LLC ("JNAM"), which manages the life insurance companies' separate account funds underlying the variable annuities products, which are sub-advised. JNAM manages and oversees those sub-advisers;

•Service provider: PGDS (US One) LLC (“PGDS”), which provides certain services to the Company and certain former affiliates; and

•Other insignificant wholly-owned subsidiaries.

The Company's Condensed Consolidated Financial Statements also include other insignificant partnerships, limited liability companies (“LLCs”) and other variable interest entities (“VIEs”) in which the Company is deemed the primary beneficiary.

Other

On August 6, 2021, the Company's Class A Common Stock was registered on a Form 10 registration statement filed with the U.S. Securities and Exchange Commission (the "SEC") and became effective under the Securities Exchange Act of 1934, as amended. We refer to that effective Form 10 registration as the "Form 10." The Demerger transaction described in the Form 10 was consummated on September 13, 2021. As of September 30, 2022, Prudential retained a 9.1% remaining interest in the Company.

8

Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 1. Business and Basis of Presentation

On September 9, 2021, the Company effected a 104,960.3836276-for-1 stock split of its Class A Common Stock and Class B Common Stock by way of a reclassification of its Class A Common Stock and Class B Common Stock (the “stock split”). The incremental par value of the newly issued shares was recorded with the offset to additional paid-in capital. All share and earnings per share information presented herein have been retroactively adjusted to reflect the stock split.

On June 18, 2020, the Company’s subsidiary, Jackson, announced that it had entered into a funds withheld coinsurance agreement with Athene Life Re Ltd. (“Athene”) effective June 1, 2020, to reinsure on a 100% quota share basis, a block of Jackson’s in-force fixed and fixed-index annuity product liabilities in exchange for a $1.2 billion ceding commission (the "Athene Reinsurance Agreement").

In addition, we entered into an investment agreement with Athene Life Re Ltd., pursuant to which Athene invested $500 million of capital in return for a 9.9% voting interest corresponding to a 11.1% economic interest in the Company. That investment was completed on July 17, 2020. In August 2020, the Company made a $500 million capital contribution to its subsidiary, Jackson. As of September 30, 2022, Athene retained a 9.0% voting interest and 9.0% economic interest.

We continue to monitor developments related to the COVID-19 pandemic. The COVID-19 pandemic caused significant economic and financial turmoil in the United States and around the world. There has been a steady resumption of activity during 2022; however, at this time it is not possible to estimate the long-term effectiveness of any therapeutic treatments and vaccines for COVID-19, or their efficacy with respect to current or future variants or mutations of COVID-19, or the longer-term effects that the COVID-19 pandemic could have on our business. The extent to which the COVID-19 pandemic impacts our business, results of operations, financial condition and cash flows will depend on future developments that are highly uncertain and cannot be predicted. The Company implemented business continuity plans that already were in place to ensure the availability of services for our customers, work at home capabilities for our employees, where appropriate, and other ongoing risk management activities. The Company had employees, as needed or voluntarily, in our offices during this time, as permitted by local and state restrictions. The Company rolled out a broader “return to office plan” for all employees, and since September 2022, required some associates to return to the office five days a week. Employees below director level remain on an “office-centric” hybrid schedule between in-office and remote working arrangements.

Basis of Presentation

The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information. Accordingly, certain financial information that is normally included in annual financial statements prepared in accordance with GAAP, but not required for interim reporting purposes, has been condensed or omitted. These Condensed Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements and the related notes included in our Annual Report on Form 10-K for the year ended December 31, 2021, as filed with the SEC on March 7, 2022, (the "2021 Annual Report"). The condensed consolidated financial information as of December 31, 2021, included herein, has been derived from the audited Consolidated Financial Statements in the 2021 Annual Report, although certain amounts have been reclassified to conform to the 2022 presentation.

Certain accounting policies, which significantly affect the determination of financial condition, results of operations and cash flows, are summarized in the Notes to Consolidated Financial Statements in the Company’s 2021 Annual Report.

In the opinion of management, these financial statements include all normal recurring adjustments necessary for a fair presentation of the Company’s results. Operating results for the three and nine months ended September 30, 2022, are not necessarily indicative of the results that may be expected for the full year ending December 31, 2022. All material intercompany accounts and transactions have been eliminated in consolidation.

Use of Estimates

The preparation of the Condensed Consolidated Financial Statements in conformity with GAAP requires the use of estimates and assumptions about future events that affect the amounts reported in the Condensed Consolidated Financial Statements and the accompanying notes. Significant estimates or assumptions, as further discussed in the notes, include:

•Valuation of investments and derivative instruments, including fair values of securities deemed to be in an illiquid market and the determination of when an impairment is necessary;

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Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 1. Business and Basis of Presentation

•Assessments as to whether certain entities are variable interest entities, the existence of reconsideration events and the determination of which party, if any, should consolidate the entity;

•Assumptions impacting estimated future gross profits, including policyholder behavior, mortality rates, expenses, projected hedging costs, investment returns and policy crediting rates, used in the calculation of amortization of deferred acquisition costs;

•Assumptions used in calculating policy reserves and liabilities, including policyholder behavior, mortality rates, expenses, investment returns and policy crediting rates;

•Assumptions as to future earnings levels being sufficient to realize deferred tax benefits;

•Estimates related to expectations of credit losses on certain financial assets and off-balance sheet exposures;

•Assumptions and estimates associated with the Company’s tax positions, including an estimate of the dividends received deduction, which impact the amount of recognized tax benefits recorded by the Company; and

•Assumptions used in calculating the value of guaranteed benefits.

These estimates and assumptions are based on management’s best estimates and judgments. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors deemed appropriate. As facts and circumstances dictate, these estimates and assumptions may be adjusted. Since future events and their effects cannot be determined with precision, actual results could differ significantly from these estimates. Changes in estimates, including those resulting from continuing changes in the economic environment, will be reflected in the consolidated financial statements in the periods the estimates are changed.

Revision of Prior Period Financial Statements

The Company identified errors related to the classification of certain balances and amounts in the line items of the consolidated balance sheets and consolidated income statements. These errors resulted in the revision of balances and amounts related to deferred sales inducement assets, liabilities for certain life-contingent annuities, sub-advisor fee expenses, and other operating expense items that impacted previously issued consolidated financial statements. The impact of these errors to the current and the prior periods' consolidated financial statements were not considered to be material and had no impact on shareholders' equity or net income. However, to improve the consistency and comparability of the financial statements, management revised the financial statements and related disclosures in this quarterly report. See Note 20 to the Notes to Condensed Consolidated Financial Statements for details of the revisions.

2. New Accounting Standards

Changes in Accounting Principles – Adopted in Current Year

In March 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” The new guidance provides optional expedients for applying GAAP to contracts and other transactions affected by reference rate reform and is effective for contract modifications made between March 12, 2020 and December 31, 2022. If certain criteria are met, an entity will not be required to remeasure or reassess contracts impacted by reference rate reform. The practical expedient allowed by this standard was elected and is being applied prospectively by the Company as reference rate reform unfolds. The contracts modified to date met the criteria for the practical expedient and therefore had no material impact on the Company’s consolidated financial statements. The Company will continue to evaluate the impacts of reference rate reform on contract modifications and other transactions through December 31, 2022.

Changes in Accounting Principles – Issued but Not Yet Adopted

In August 2018, the FASB issued ASU 2018-12, “Targeted Improvements to the Accounting for Long-Duration Contracts,” which includes changes to the existing recognition, measurement, presentation and disclosure requirements for long-duration contracts issued by an insurance entity. ASU No. 2018-12 is effective for fiscal years beginning after December 15, 2022.

10

Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 2. New Accounting Standards

The amendments in ASU 2018-12 contain four significant changes:

1.Market risk benefits: market risk benefits, a new term for certain contracts or features that provide for potential benefits in addition to the account balance which expose us to other than nominal market risk (for example, certain guaranteed benefits on annuity contracts, including guaranteed minimum withdrawal benefits and guaranteed minimum death benefits on variable annuities), will be measured at fair value. Changes in fair value will be recorded and presented separately within the income statement, with the exception of changes in fair value due to instrument-specific credit risk, which will be recognized in other comprehensive income (loss) (“OCI”). See Note 10 for more information regarding guaranteed benefits;

2.Deferred acquisition costs: deferred acquisition costs (“DAC”) will be amortized on a constant-level basis, independent of profitability on the underlying business;

3.Liability for future policy benefits: annual review and, if necessary, update of cash flow assumptions used to measure the liability for future policy benefits for nonparticipating traditional and limited-payment insurance contracts will be required. These liabilities will be discounted using an upper-medium grade fixed income instrument yield which will be updated quarterly, with related changes in the liability recognized in OCI; and

4.Enhanced disclosures: enhanced disclosures, including disaggregated roll-forwards of certain balance sheet accounts that provide information about actual and expected cash flows, as well as information about significant inputs, judgments, assumptions and methods used in measurement, will be required. The enhanced disclosures are intended to improve the ability of users of the financial statements to evaluate the timing, amount, and uncertainty of cash flows arising from long-duration contracts.

The Company will adopt the standard effective January 1, 2023, with a transition date of January 1, 2021, using a modified retrospective approach, except for market risk benefits for which we will apply a full retrospective transition approach. Under the modified retrospective approach, the Company will apply the guidance to contracts in force on the transition date on the basis of their existing carrying value, using updated future cash flow assumptions, and eliminate certain related amounts in accumulated other comprehensive income (loss) (“AOCI”). Under the full retrospective transition approach, the Company will apply the guidance as of the earliest period presented, using actual historical experience information as of contract inception, as if the accounting principle had always been applied.

In accordance with its established governance framework, the Company continues to progress with implementation efforts including determining significant accounting policy decisions, modifying actuarial valuation models, revising reporting processes, and updating internal controls over financial reporting.

Given the nature and extent of the required changes, the adoption of this standard is expected to have a significant impact on the Company’s consolidated financial statements and disclosures. Based upon the elected transition methods, the Company currently estimates the adoption of the standard will result in a decrease of between approximately $2 billion and $4 billion in the Company’s total equity at the transition date of January 1, 2021. This estimate is based on the economic conditions experienced at the transition date.

The most significant drivers of the transition adjustment are expected to be:

•changes to the measurement of certain benefits currently accounted for as insurance benefits (e.g., guaranteed minimum death benefits on variable annuities) which will be classified as market risk benefits upon adoption and remeasured at fair value, the impact of which is highly dependent on market conditions, including interest rates;

•changes to the discount rate used to measure liabilities for future policyholder benefits that will be remeasured using current upper-medium grade fixed-income instrument yields, which are generally considered to be those on single-A rated public corporate debt; and

•the removal of certain balances recorded in AOCI related to changes in unrealized appreciation (depreciation) on investments.

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Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 3. Segment Information

In March 2022, the FASB issued ASU 2022-02, “Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures.” The new guidance eliminates the accounting guidance for troubled debt restructurings by creditors, and instead requires an entity to evaluate whether a modification represents a new loan or a continuation of an existing loan. The amendments also enhance disclosure requirements for certain loan refinancings and restructurings by creditors when a borrower is experiencing financial difficulty. New guidance for vintage disclosures requires that current-period gross write-offs be disclosed by year of origination for financing receivables and net investments in leases that fall within scope of the current expected credit loss model. The amendments in this update are effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Updates should be applied prospectively. However, an entity has the option to apply the modified retrospective method related to the recognition and measurements of troubled debt restructurings. Early adoption is permitted. The Company does not anticipate a significant impact when adopting the new guidance and does not plan to early adopt.

3. Segment Information

The Company has three reportable segments consisting of Retail Annuities, Institutional Products, Closed Life and Annuity Block, plus its Corporate and Other segment. These segments reflect how the Company’s chief operating decision maker views and manages the business. The following is a brief description of the Company’s reportable segments.

Retail Annuities

The Company’s Retail Annuities segment offers a variety of retirement income and savings products through its diverse suite of products, consisting primarily of variable annuities, fixed index annuities, fixed annuities, immediate payout annuities, and registered index-linked annuities ("RILA"). These products are distributed through various wirehouses, insurance brokers and independent broker-dealers, as well as through banks and financial institutions, primarily to high net worth investors and the mass and affluent markets.

The Company’s variable annuities represent an attractive option for retirees and soon-to-be retirees, providing access to equity market appreciation and add-on benefits, including guaranteed lifetime income. A fixed index annuity is designed for investors who desire principal protection with the opportunity to participate in capped upside investment returns linked to a reference market index. The Company also provides access to guaranteed lifetime income as an add-on benefit. A fixed annuity is a guaranteed product designed to build wealth without market exposure, through a crediting rate that is likely to be superior to interest rates offered from banks or money market funds. A RILA product offers customers exposure to market returns through market index-linked investment options, subject to a cap, and offers a variety of guarantees designed to modify or limit losses.

The financial results of the variable annuity business within the Company’s Retail Annuities segment are largely dependent on the performance of the contract holder account value, which impacts both the level of fees collected and the benefits paid to the contract holder. The financial results of the Company’s fixed annuities, including the fixed portion of its variable annuity, RILA and fixed index annuities, are largely dependent on the Company’s ability to earn a spread between earned investment rates on general account assets and the interest credited to contract holders.

Institutional Products

The Company’s Institutional Products consist of traditional Guaranteed Investment Contracts (GICs), funding agreements (including agreements issued in conjunction with the Company’s participation in the U.S. Federal Home Loan Bank ("FHLB") program) and medium-term note funding agreements. The Company’s GIC products are marketed to defined contribution pension and profit-sharing retirement plans. Funding agreements are marketed to institutional investors, including corporate cash accounts and securities lending funds, as well as money market funds, and are issued to the FHLB in connection with its program.

The financial results of the Company’s institutional products business are primarily dependent on the Company’s ability to earn a spread between earned investment rates on general account assets and the interest credited on GICs and funding agreements.

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Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 3. Segment Information

Closed Life and Annuity Blocks

The Company's Closed Life and Annuity Blocks segment is primarily composed of blocks of business that have been acquired since 2004. The segment includes various protection products, primarily whole life, universal life, variable universal life, and term life insurance products, as well as fixed, fixed index, and payout annuities. The Closed Life and Annuity Blocks segment also includes a block of group payout annuities that we assumed from John Hancock Life Insurance Company (USA) (“John Hancock”) and John Hancock Life Insurance Company of New York (“John Hancock NY”) through reinsurance transactions in 2018 and 2019, respectively. The Company historically offered traditional and interest-sensitive life insurance products but discontinued new sales of life insurance products in 2012, as we believe opportunistically acquiring mature blocks of life insurance policies is a more efficient means of diversifying our in-force business than selling new life insurance products.

The profitability of the Company’s Closed Life and Annuity Blocks segment is largely driven by its historical ability to appropriately price its products and purchase appropriately priced blocks of business, as realized through underwriting, expense and net gains (losses) on derivatives and investments, and the ability to earn an assumed rate of return on the assets supporting that business.

Corporate and Other

The Company’s Corporate and Other segment primarily consists of the operations of its investment management subsidiary, PPM, VIE’s, and unallocated corporate income and expenses. The Corporate and Other segment also includes certain eliminations and consolidation adjustments.

Segment Performance Measurement

Segment operating revenues and pretax adjusted operating earnings are non-GAAP financial measures that management believes are critical to the evaluation of the financial performance of the Company’s segments. The Company uses the same accounting policies and procedures to measure segment pretax adjusted operating earnings as used in its reporting of consolidated net income. Pretax adjusted operating earnings is defined as net income recorded in accordance with GAAP, excluding certain items that may be highly variable from period to period due to accounting treatment under GAAP, or that are non-recurring in nature, as well as certain other revenues and expenses that are not considered drivers of underlying performance. Operating revenues and pretax adjusted operating earnings should not be used as a substitute for revenues and net income as calculated in accordance with GAAP.

Pretax adjusted operating earnings equals net income adjusted to eliminate the impact of the following items:

1.Guaranteed Benefits and Hedging Results: the fees attributed to guaranteed benefits, the associated movements in optional guaranteed benefit liabilities and related claims and benefit payments are excluded from pretax adjusted operating earnings, as we believe this approach appropriately removes the impact to both revenue and related expenses associated with the guaranteed benefit features that are offered for certain of our variable annuities and fixed index annuities and gives investors a better picture of what is driving our underlying performance. This adjustment includes the following components:

•Fees Attributable to Guarantee Benefits: fees earned in conjunction with guaranteed benefit features offered for certain of our variable annuities and fixed index annuities are set at a level intended to mitigate the cost of hedging and funding the liabilities associated with such guaranteed benefit features. The full amount of the fees attributable to guaranteed benefit features have been excluded from pretax adjusted operating earnings as the related net movements in freestanding derivatives and net reserve and embedded derivative movements, as described below, have been excluded from pretax adjusted operating earnings. This adjusted presentation of our earnings is intended to directly align revenue and related expenses associated with the guaranteed benefit features;

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Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 3. Segment Information

•Net Movement in Freestanding Derivatives, except earned income (periodic settlements and changes in settlement accruals) on derivatives that are hedges of investments, but do not qualify for hedge accounting treatment: changes in the fair value of our freestanding derivatives used to manage the risk associated with our life and annuity reserves, including those arising from the guaranteed benefit features offered for certain of our variable annuities and fixed index annuities. Net movements in freestanding derivatives have been excluded from pretax adjusted operating earnings as the market value of these derivatives may vary significantly from period to period as a result of near-term market conditions and therefore are not directly comparable or reflective of the underlying performance of our business;

•Net Reserve and Embedded Derivative Movements: changes in the valuation of certain life and annuity reserves, a portion of which are accounted for as embedded derivative instruments, and which are primarily composed of variable and fixed index annuity reserves, including those arising from the guaranteed benefit features offered for certain of our variable annuities. Net reserve and embedded derivative movements have been excluded from pretax adjusted operating earnings as the carrying values of these derivatives may vary significantly from period to period as the result of near-term market conditions and policyholder behavior-related inputs and therefore are not directly comparable or reflective of the underlying performance of our business. Movements in reserves attributable to the current period claims and benefit payments in excess of a customer’s account value on these policies are also excluded from pretax adjusted operating earnings as these benefit payments are affected by near-term market conditions and policyholder behavior-related inputs and therefore may vary significantly from period to period;

•DAC and Deferred Sales Inducements ("DSI") Impact: amortization of deferred acquisition costs and deferred sales inducements associated with the items excluded from pretax adjusted operating earnings;

•Assumption changes: the impact on the valuation of Net Derivative and Reserve Movements, including amortization of DAC, arising from changes in underlying actuarial assumptions on an annual basis;

2.Net Realized Investment Gains and Losses including change in fair value of funds withheld embedded derivative: realized investment gains and losses associated with the periodic sales or disposals of securities, excluding those held within our trading portfolio, as well as impairments of securities, after adjustment for the non-credit component of the impairment charges and change in fair value of funds withheld embedded derivative related to the Athene Reinsurance Transaction;

3.Loss on Athene Reinsurance Transaction: includes contractual ceding commission, cost of reinsurance write-off and DAC and DSI write-off related to the Athene Reinsurance Transaction;

4.Net investment income on funds withheld assets: includes net investment income on funds withheld assets related to funds withheld reinsurance transactions;

5.Other items: one-time or other non-recurring items, such as costs relating to the Demerger and our separation from Prudential, the impact of discontinued operations and investments that are consolidated on our financial statements due to U.S. GAAP accounting requirements, such as our investments in collateralized loan obligations ("CLOs"), but for which the consolidation effects are not aligned with our economic interest or exposure to those entities.

Operating income taxes are calculated using the prevailing corporate federal income tax rate of 21% while taking into account any items recognized differently in our financial statements and federal income tax returns, including the dividends received deduction and other tax credits. For interim reporting periods, the Company uses an estimated annual effective tax rate ("ETR") in computing its tax provision including consideration of discrete items.

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Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 3. Segment Information

Set forth in the tables below is certain information with respect to the Company’s segments, as described above (in millions):

Three Months Ended September 30, 2022	Retail Annuities		Institutional Products		Closed Life and Annuity Blocks		Corporate and  Other		Total Consolidated
Operating Revenues
Fee income	$	1,002	$	—	$	118	$	13	$	1,133
Premiums	3		—		36		—		39
Net investment income	72		80		166		22		340
Income (loss) on operating derivatives	2		(8)		7		2		3
Other income	11		—		8		—		19
Total Operating Revenues	1,090		72		335		37		1,534
Operating Benefits and Expenses
Death, other policy benefits and change in policy     reserves, net of deferrals	5		—		176		—		181
Interest credited on other contract holder funds, net     of deferrals and amortization	72		51		101		—		224
Interest expense	8		—		—		21		29
Operating costs and other expenses, net of deferrals	541		1		22		28		592
Amortization of deferred acquisition costs	100		—		3		1		104
Total Operating Benefits and Expenses	726		52		302		50		1,130
Pretax Adjusted Operating Earnings	$	364	$	20	$	33	$	(13)	$	404

Three Months Ended September 30, 2021	Retail Annuities		Institutional Products		Closed Life and Annuity Blocks		Corporate and  Other		Total Consolidated
Operating Revenues
Fee income	$	1,194	$	—	$	123	$	15	$	1,332
Premiums	2		—		39		—		41
Net investment income	180		69		245		(23)		471
Income (loss) on operating derivatives	13		(1)		18		8		38
Other income	12		—		7		(2)		17
Total Operating Revenues	1,401		68		432		(2)		1,899
Operating Benefits and Expenses
Death, other policy benefits and change in policy     reserves, net of deferrals	38		—		216		—		254
Interest credited on other contract holder funds, net     of deferrals and amortization	56		47		106		—		209
Interest expense	6		(2)		—		2		6
Operating costs and other expenses, net of deferrals	614		2		38		31		685
Amortization of deferred acquisition costs	160		—		4		10		174
Total Operating Benefits and Expenses	874		47		364		43		1,328
Pretax Adjusted Operating Earnings	$	527	$	21	$	68	$	(45)	$	571

15

Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 3. Segment Information

Nine Months Ended September 30, 2022	Retail Annuities		Institutional Products		Closed Life and Annuity Blocks		Corporate and  Other		Total Consolidated
Operating Revenues
Fee income	$	3,144	$	—	$	358	$	43	$	3,545
Premiums	6		—		108		—		114
Net investment income	299		216		522		65		1,102
Income (loss) on operating derivatives	20		(13)		35		20		62
Other income	33		—		25		2		60
Total Operating Revenues	3,502		203		1,048		130		4,883
Operating Benefits and Expenses
Death, other policy benefits and change in policy     reserves, net of deferrals	54		—		636		—		690
Interest credited on other contract holder funds, net     of deferrals and amortization	191		137		300		—		628
Interest expense	19		—		—		54		73
Operating costs and other expenses, net of deferrals	1,648		4		74		74		1,800
Amortization of deferred acquisition costs	602		—		7		18		627
Total Operating Benefits and Expenses	2,514		141		1,017		146		3,818
Pretax Adjusted Operating Earnings	$	988	$	62	$	31	$	(16)	$	1,065

Nine Months Ended September 30, 2021	Retail Annuities		Institutional Products		Closed Life and Annuity Blocks		Corporate and  Other		Total Consolidated
Operating Revenues
Fee income	$	3,433	$	—	$	371	$	49	$	3,853
Premiums	15		—		110		—		125
Net investment income	541		189		723		9		1,462
Income (loss) on operating derivatives	42		(1)		56		20		117
Other income	35		—		29		6		70
Total Operating Revenues	4,066		188		1,289		84		5,627
Operating Benefits and Expenses
Death, other policy benefits and change in policy     reserves, net of deferrals	90		—		629		—		719
Interest credited on other contract holder funds, net     of deferrals and amortization	168		147		315		—		630
Interest expense	17		—		—		2		19
Operating costs and other expenses, net of deferrals	1,780		4		131		111		2,026
Amortization of deferred acquisition costs	232		—		11		25		268
Total Operating Benefits and Expenses	2,287		151		1,086		138		3,662
Pretax Adjusted Operating Earnings	$	1,779	$	37	$	203	$	(54)	$	1,965

Intersegment eliminations in the above tables are included in the Corporate and Other segment. These include the elimination of investment income, net of deferred acquisition costs amortization, between Retail Annuities and the Corporate and Other segments, as well as the elimination from fee income and investment income of investment fees paid by Jackson to its affiliate PPM, which were $18 million and $17 million for the three months ended September 30, 2022 and 2021, respectively, and $52 million and $52 million for the nine months ended September 30, 2022 and 2021, respectively.

16

Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 3. Segment Information

The following table summarizes the reconciling items from the non-GAAP measure of operating revenues to the GAAP measure of total revenues attributable to the Company (in millions):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Total operating revenues	$	1,534	$	1,899	$	4,883	$	5,627
Fees attributed to variable annuity benefit reserves	771		728		2,300		2,101
Net gains (losses) on derivatives and investments	1,416		(1,418)		6,829		(1,311)
Net investment income (loss) related to noncontrolling interests	(11)		62		51		186
Consolidated investments	(1)		4		(68)		35
Net investment income on funds withheld assets	313		300		937		884
Total revenues (1)	$	4,022	$	1,575	$	14,932	$	7,522

(1) Substantially all the Company's revenues originated in the United States. There were no individual customers that exceeded 10% of total revenues.

The following table summarizes the reconciling items from the non-GAAP measure of operating benefits and expenses to the GAAP measure of total benefits and expenses attributable to the Company (in millions):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Total operating benefits and expenses	$	1,130	$	1,328	$	3,818	$	3,662
Benefits attributed to variable annuity benefit reserves	65		25		158		91
Amortization of DAC and DSI related to non-operating revenues and expenses	458		(169)		1,648		284
Statement of Position 03-1 reserve movements	341		127		1,242		123
Other items	1		12		2		63
Total benefits and expenses	$	1,995	$	1,323	$	6,868	$	4,223

The following table summarizes the reconciling items, net of deferred acquisition costs and deferred sales inducements, from the non-GAAP measure of pretax adjusted operating earnings to the GAAP measure of net income attributable to the Company (in millions):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Pretax adjusted operating earnings	$	404	$	571	$	1,065	$	1,965
Non-operating adjustments (income) loss:
Guaranteed benefits and hedging results:
Fees attributable to guarantee benefit reserves	771		728		2,300		2,101
Net movement in freestanding derivatives	(253)		(493)		1,118		(3,966)
Net reserve and embedded derivative movements	714		(997)		1,781		2,222
DAC and DSI impact	(458)		169		(1,648)		(284)
Assumption changes	—		—		—		—
Total guaranteed benefits and hedging results	774		(593)		3,551		73
Net realized investment gains (losses) including change in fair value of funds withheld embedded derivative	549		(79)		2,529		219
Net investment income on funds withheld assets	313		300		937		884
Other items	(2)		(9)		(69)		(28)
Pretax income (loss) attributable to Jackson Financial Inc.	2,038		190		8,013		3,113
Income tax expense (benefit)	559		(16)		1,606		515
Net income (loss) attributable to Jackson Financial Inc.	$	1,479	$	206	$	6,407	$	2,598

17

Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 4. Investments

4. Investments

Investments are comprised primarily of fixed-income securities and loans, primarily publicly-traded corporate and government bonds, asset-backed securities and mortgage loans. Asset-backed securities include mortgage-backed and other structured securities. The Company generates the majority of its general account deposits from interest-sensitive individual annuity contracts, life insurance products and institutional products on which it has committed to pay a declared rate of interest. The Company's strategy of investing in fixed-income securities and loans aims to ensure matching of the asset yield with the amounts credited to the interest-sensitive liabilities and to earn a stable return on its investments.

Debt Securities

The following table sets forth the composition of the fair value of debt securities at September 30, 2022 and December 31, 2021, classified by rating categories as assigned by nationally recognized statistical rating organizations (“NRSRO”), the National Association of Insurance Commissioners (“NAIC”), or if not rated by such organizations, the Company’s investment advisors. The Company uses the second lowest rating by an NRSRO when NRSRO ratings are not equivalent and, for purposes of the table, if not otherwise rated by a NRSRO, the NAIC rating of a security is converted to an equivalent NRSRO-style rating. At September 30, 2022 and December 31, 2021, the carrying value of investments rated by the Company’s consolidated investment advisor totaled $72 million and $13 million, respectively.

	Percent of Total Debt Securities Carrying Value
	September 30, 2022	December 31, 2021
Investment Rating
AAA	15.3%	14.5%
AA	8.8%	9.6%
A	29.9%	28.5%
BBB	38.2%	40.9%
Investment grade	92.2%	93.5%
BB	4.0%	3.6%
B and below	3.8%	2.9%
Below investment grade	7.8%	6.5%
Total debt securities	100.0%	100.0%

At September 30, 2022, based on ratings by NRSROs, of the total carrying value of debt securities in an unrealized loss position, 73% were investment grade, 7% were below investment grade and 20% were not rated. Unrealized losses on debt securities that were below investment grade or not rated were approximately 20% of the aggregate gross unrealized losses on available-for-sale debt securities.

At December 31, 2021, based on ratings by NRSROs, of the total carrying value of debt securities in an unrealized loss position, 76% were investment grade, 2% were below investment grade and 22% were not rated. Unrealized losses on debt securities that were below investment grade or not rated were approximately 16% of the aggregate gross unrealized losses on available for sale debt securities.

Corporate securities in an unrealized loss position were diversified across industries. As of September 30, 2022, the industries accounting for the largest percentage of unrealized losses included utilities (16% of corporate gross unrealized losses) and healthcare (10%). The largest unrealized loss related to a single corporate obligor was $61 million at September 30, 2022.

As of December 31, 2021, the industries accounting for the largest percentage of unrealized losses included financial services (16% of corporate gross unrealized losses) and consumer goods (15%). The largest unrealized loss related to a single corporate obligor was $16 million at December 31, 2021.

18

Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 4. Investments

At September 30, 2022 and December 31, 2021, the amortized cost, allowance for credit loss ("ACL"), gross unrealized gains and losses, and fair value of debt securities, including trading securities and securities carried at fair value under the fair value option, were as follows (in millions):

				Allowance		Gross		Gross
		Amortized		for		Unrealized		Unrealized		Fair
September 30, 2022		Cost (1)		Credit Loss		Gains		Losses		Value
	U.S. government securities	$	5,064	$	—	$	—	$	1,008	$	4,056
	Other government securities	1,712		3		2		262		1,449
	Public utilities	5,901		—		19		811		5,109
	Corporate securities	29,748		23		30		4,360		25,395
	Residential mortgage-backed	492		5		20		52		455
	Commercial mortgage-backed	1,818		—		—		173		1,645
	Other asset-backed securities	6,359		—		9		570		5,798
	Total debt securities	$	51,094	$	31	$	80	$	7,236	$	43,907
				Allowance		Gross		Gross
		Amortized		for		Unrealized		Unrealized		Fair
December 31, 2021		Cost (1)		Credit Loss		Gains		Losses		Value
	U.S. government securities	$	4,525	$	—	$	97	$	301	$	4,321
	Other government securities	1,489		—		147		17		1,619
	Public utilities	6,069		—		671		25		6,715
	Corporate securities	29,701		—		1,682		237		31,146
	Residential mortgage-backed	528		2		46		3		569
	Commercial mortgage-backed	1,968		—		76		6		2,038
	Other asset-backed securities	6,926		7		71		23		6,967
	Total debt securities	$	51,206	$	9	$	2,790	$	612	$	53,375
	(1) Amortized cost, apart from the carrying value for securities carried at fair value under the fair value option and trading securities.

The amortized cost, ACL, gross unrealized gains and losses, and fair value of debt securities at September 30, 2022, by contractual maturity, are shown below (in millions). Actual maturities may differ from contractual maturities where securities can be called or prepaid with or without early redemption penalties.

			Allowance		Gross		Gross
	Amortized		for		Unrealized		Unrealized		Fair
	Cost (1)		Credit Loss		Gains		Losses		Value
Due in 1 year or less	$	1,333	$	—	$	1	$	6	$	1,328
Due after 1 year through 5 years	9,655		3		8		497		9,163
Due after 5 years through 10 years	14,158		20		9		1,896		12,251
Due after 10 years through 20 years	9,260		3		32		1,842		7,447
Due after 20 years	8,019		—		1		2,200		5,820
Residential mortgage-backed	492		5		20		52		455
Commercial mortgage-backed	1,818		—		—		173		1,645
Other asset-backed securities	6,359		—		9		570		5,798
Total	$	51,094	$	31	$	80	$	7,236	$	43,907

(1) Amortized cost, apart from the carrying value for securities carried at fair value under the fair value option and trading securities.

19

Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 4. Investments

As required by law in various states in which business is conducted, securities with a carrying value of $90 million and $117 million at September 30, 2022 and December 31, 2021, respectively, were on deposit with regulatory authorities.

Residential mortgage-backed securities (“RMBS”) include certain RMBS that are collateralized by residential mortgage loans and are neither expressly nor implicitly guaranteed by U.S. government agencies (“non-agency RMBS”). The Company’s non-agency RMBS include investments in securities backed by prime, Alt-A, and subprime loans, as follows (in millions):

			Allowance		Gross		Gross
	Amortized		for		Unrealized		Unrealized		Fair
September 30, 2022	Cost (1)		Credit Loss		Gains		Losses		Value
Prime	$	209	$	3	$	2	$	25	$	183
Alt-A	83		2		9		7		83
Subprime	29		—		9		—		38
Total non-agency RMBS	$	321	$	5	$	20	$	32	$	304
			Allowance		Gross		Gross
	Amortized		for		Unrealized		Unrealized		Fair
December 31, 2021	Cost (1)		Credit Loss		Gains		Losses		Value
Prime	$	228	$	1	$	10	$	2	$	235
Alt-A	94		1		21		—		114
Subprime	39		—		13		—		52
Total non-agency RMBS	$	361	$	2	$	44	$	2	$	401
(1) Amortized cost, apart from carrying value for securities carried at fair value under the fair value option and trading securities.

The Company defines its exposure to non-agency residential mortgage loans as follows:

•Prime loan-backed securities are collateralized by mortgage loans made to the highest rated borrowers.

•Alt-A loan-backed securities are collateralized by mortgage loans made to borrowers who lack credit documentation or necessary requirements to obtain prime borrower rates.

•Subprime loan-backed securities are collateralized by mortgage loans made to borrowers that have a FICO score of 660 or lower.

20

Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 4. Investments

The following table summarizes the number of securities, fair value and the gross unrealized losses of debt securities, aggregated by investment category and length of time that individual debt securities have been in a continuous loss position (dollars in millions):

	September 30, 2022					December 31, 2021
	Less than 12 months					Less than 12 months
	Gross		Fair Value			Gross		Fair Value
	Unrealized				# of	Unrealized				# of
	Losses				securities	Losses				securities
U.S. government securities	$	276	$	2,260	41	$	2	$	107	16
Other government securities	256		1,371		154	17		252		23
Public utilities	659		4,476		530	17		721		93
Corporate securities	3,217		19,878		2,649	180		6,343		728
Residential mortgage-backed	40		293		217	3		174		109
Commercial mortgage-backed	146		1,537		192	5		314		37
Other asset-backed securities	519		4,912		610	22		3,224		338
Total temporarily impaired securities	$	5,113	$	34,727	4,393	$	246	$	11,135	1,344
	12 months or longer					12 months or longer
	Gross		Fair Value			Gross		Fair Value
	Unrealized				# of	Unrealized				# of
	Losses				securities	Losses				securities
U.S. government securities	$	732	$	1,634	8	$	299	$	3,190	7
Other government securities	6		47		10	—		4		2
Public utilities	152		336		55	7		99		8
Corporate securities	1,143		2,704		396	58		661		69
Residential mortgage-backed	12		71		75	—		11		12
Commercial mortgage-backed	27		95		16	1		30		3
Other asset-backed securities	51		309		41	1		11		3
Total temporarily impaired securities	$	2,123	$	5,196	601	$	366	$	4,006	104
	Total					Total
	Gross					Gross
	Unrealized		Fair		# of	Unrealized		Fair		# of
	Losses		Value		securities (1)	Losses		Value		securities (1)
U.S. government securities	$	1,008	$	3,894	43	$	301	$	3,297	23
Other government securities	262		1,418		164	17		256		25
Public utilities	811		4,812		575	24		820		101
Corporate securities	4,360		22,582		2,936	238		7,004		797
Residential mortgage-backed	52		364		292	3		185		121
Commercial mortgage-backed	173		1,632		207	6		344		40
Other asset-backed securities	570		5,221		651	23		3,235		341
Total temporarily impaired securities	$	7,236	$	39,923	4,868	$	612	$	15,141	1,448

(1) Certain securities contain multiple lots and fit the criteria of both aging groups.

Debt securities in an unrealized loss position as of September 30, 2022 did not require an impairment recognized in earnings as (i) the Company did not intend to sell these debt securities, (ii) it is not more likely than not that the Company will be required to sell these securities before recovery of their amortized cost basis, and (iii) the difference in the fair value compared to the amortized cost was due to factors other than credit loss. Based upon this evaluation, the Company believes it has the ability to generate adequate amounts of cash from normal operations to meet cash requirements with a reasonable margin of safety without requiring the sale of impaired securities.

21

Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 4. Investments

As of September 30, 2022, unrealized losses associated with debt securities are primarily due to widening credit spreads or rising risk-free rates since purchase. The Company performed a detailed analysis of the financial performance of the underlying issues in an unrealized loss position and determined that recovery of the entire amortized cost of each impaired security is expected. In addition, mortgage-backed and asset-backed securities were assessed for credit impairment using a cash flow model that incorporates key assumptions including default rates, severities, and prepayment rates. The Company estimated losses for a security by forecasting performance in the underlying loans in each transaction. The forecasted loan performance was used to project cash flows to the various tranches in the structure, as applicable. The forecasted cash flows also considered, as applicable, independent industry analyst reports and forecasts, and other independent market data. Based upon this assessment of the expected credit losses of the security given the performance of the underlying collateral compared to subordination or other credit enhancement, the Company expects to recover the entire amortized cost of each impaired security.

Evaluation of Available-for-Sale Debt Securities for Credit Loss

For debt securities in an unrealized loss position, management first assesses whether the Company has the intent to sell, or whether it is more likely than not it will be required to sell the security before the amortized cost basis is fully recovered. If either criterion is met, the amortized cost is written down to fair value through net gains (losses) on derivatives and investments as an impairment.

Debt securities in an unrealized loss position for which the Company does not have the intent to sell or is not more likely than not to sell the security before recovery to amortized cost are further evaluated to determine if the cause of the decline in fair value resulted from credit losses or other factors, which includes estimates about the operations of the issuer and future earnings potential.

The credit loss evaluation may consider the following: the extent to which the fair value is below amortized cost; changes in ratings of the security; whether a significant covenant related to the security has been breached; whether an issuer has filed or indicated a possibility of filing for bankruptcy, has missed or announced it intends to miss a scheduled interest or principal payment, or has experienced a specific material adverse change that may impair its creditworthiness; judgments about an obligor’s current and projected financial position; an issuer’s current and projected ability to service and repay its debt obligations; the existence of, and realizable value of, any collateral backing the obligations; and the macro-economic and micro-economic outlooks for specific industries and issuers.

In addition to the above, the credit loss review of investments in asset-backed securities includes the review of future estimated cash flows, including expected and stress case scenarios, to identify potential shortfalls in contractual payments. These estimated cash flows are developed using available performance indicators from the underlying assets including current and projected default or delinquency rates, levels of credit enhancement, current subordination levels, vintage, expected loss severity and other relevant characteristics. These estimates reflect a combination of data derived by third parties and internally developed assumptions. Where possible, this data is benchmarked against third-party sources.

For mortgage-backed securities, credit losses are assessed using a cash flow model that estimates the cash flows on the underlying mortgages, using the security-specific collateral characteristics and transaction structure. The model estimates cash flows from the underlying mortgage loans and distributes those cash flows to various tranches of securities, considering the transaction structure and any subordination and credit enhancements existing in that structure. The cash flow model incorporates actual cash flows on the mortgage-backed securities through the current period and then projects the remaining cash flows using a number of assumptions, including prepayment timing, default rates and loss severity. Specifically, for prime and Alt-A RMBS, the assumed default percentage is dependent on the severity of delinquency status, with foreclosures and real estate owned receiving higher rates, but also includes the currently performing loans.

These estimates reflect a combination of data derived by third parties and internally developed assumptions. Where possible, this data is benchmarked against other third-party sources. In addition, these estimates are extrapolated along a default timing curve to estimate the total lifetime pool default rate. When a credit loss is determined to exist and the present value of cash flows expected to be collected is less than the amortized cost of the security, an allowance for credit loss is recorded along with a charge to net gains (losses) on derivatives and investments, limited by the amount that the fair value is less than amortized cost. Any remaining unrealized loss after recording the allowance for credit loss is the non-credit amount and is recorded to other comprehensive income.

22

Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 4. Investments

The allowance for credit loss for specific debt securities may be increased or reversed in subsequent periods due to changes in the assessment of the present value of cash flows that are expected to be collected. Any changes to the allowance for credit loss is recorded as a provision for (or reversal of) credit loss expense in net gains (losses) on derivatives and investments.

When all, or a portion, of a security is deemed uncollectible, the uncollectible portion is written-off with an adjustment to amortized cost and a corresponding reduction to the allowance for credit losses.

Accrued interest receivables are presented separate from the amortized cost basis of debt securities. Accrued interest receivables that are determined to be uncollectible are written off with a corresponding reduction to net investment income. Accrued interest of nil was written off during the three and nine months ended September 30, 2022 and 2021.

The roll forward of the allowance for credit loss for available-for-sale securities by sector is as follows (in millions):

Three Months Ended September 30, 2022	US government securities		Other government securities		Public utilities		Corporate securities		Residential mortgage-backed		Commercial mortgage-backed		Other asset-backed securities		Total
Balance at July 1, 2022	$	—	$	6	$	1	$	30	$	6	$	—	$	—	$	43
Additions for which credit loss was not previously recorded	—		—		—		12		1		—		—		13
Changes for securities with previously recorded credit loss	—		—		(1)		(8)		(2)		—		—		(11)
Additions for purchases of PCD debt securities (1)	—		—		—		—		—		—		—		—
Reductions from charge-offs	—		—		—		—		—		—		—		—
Reductions for securities disposed	—		(3)		—		—		—		—		—		(3)
Securities intended/required to be sold before recovery of amortized cost basis	—		—		—		(11)		—		—		—		(11)
Balance at September 30, 2022 (2)	$	—	$	3	$	—	$	23	$	5	$	—	$	—	$	31

Three Months Ended September 30, 2021	US government securities		Other government securities		Public utilities		Corporate securities		Residential mortgage-backed		Commercial mortgage-backed		Other asset-backed securities		Total
Balance at July 1, 2021	$	—	$	—	$	—	$	—	$	1	$	—	$	6	$	7
Additions for which credit loss was not previously recorded	—		—		—		—		1		—		—		1
Changes for securities with previously recorded credit loss	—		—		—		—		—		—		17		17
Additions for purchases of PCD debt securities (1)	—		—		—		—		—		—		—		—
Reductions from charge-offs	—		—		—		—		—		—		—		—
Reductions for securities disposed	—		—		—		—		—		—		(16)		(16)
Securities intended/required to be sold before recovery of amortized cost basis	—		—		—		—		—		—		—		—
Balance at September 30, 2021 (2)	$	—	$	—	$	—	$	—	$	2	$	—	$	7	$	9

23

Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 4. Investments

Nine Months Ended September 30, 2022	US government securities		Other government securities		Public utilities		Corporate securities		Residential mortgage-backed		Commercial mortgage-backed		Other asset-backed securities		Total
Balance at January 1, 2022	$	—	$	—	$	—	$	—	$	2	$	—	$	7	$	9
Additions for which credit loss was not previously recorded	—		6		1		42		3		—		—		52
Changes for securities with previously recorded credit loss	—		—		(1)		(3)		1		—		(7)		(10)
Additions for purchases of PCD debt securities (1)	—		—		—		—		—		—		—		—
Reductions from charge-offs	—		—		—		—		—		—		—		—
Reductions for securities disposed	—		(3)		—		—		(1)		—		—		(4)
Securities intended/required to be sold before recovery of amortized cost basis	—		—		—		(16)		—		—		—		(16)
Balance at September 30, 2022 (2)	$	—	$	3	$	—	$	23	$	5	$	—	$	—	$	31

Nine Months Ended September 30, 2021	US government securities		Other government securities		Public utilities		Corporate securities		Residential mortgage-backed		Commercial mortgage-backed		Other asset-backed securities		Total
Balance at January 1, 2021	$	—	$	—	$	—	$	—	$	—	$	—	$	14	$	14
Additions for which credit loss was not previously recorded	—		—		—		—		2		—		—		2
Changes for securities with previously recorded credit loss	—		—		—		—		—		—		9		9
Additions for purchases of PCD debt securities (1)	—		—		—		—		—		—		—		—
Reductions from charge-offs	—		—		—		—		—		—		—		—
Reductions for securities disposed	—		—		—		—		—		—		(16)		(16)
Securities intended/required to be sold before recovery of amortized cost basis	—		—		—		—		—		—		—		—
Balance at September 30, 2021 (2)	$	—	$	—	$	—	$	—	$	2	$	—	$	7	$	9

(1) Represents purchased credit-deteriorated ("PCD") fixed maturity available-for-sale securities.

(2) Accrued interest receivable on debt securities totaled $414 million and $397 million as of September 30, 2022 and 2021, respectively, and was excluded from the determination of credit losses for the three and nine months ended September 30, 2022 and 2021.

24

Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 4. Investments

Net Investment Income

The sources of net investment income were as follows (in millions):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Debt securities (1)	$	306	$	272	$	792	$	872
Equity securities	(25)		—		(18)		6
Mortgage loans	70		79		211		242
Policy loans	18		20		52		55
Limited partnerships	(7)		193		151		586
Other investment income	14		2		25		10
Total investment income excluding funds withheld assets	376		566		1,213		1,771
Net investment income on funds withheld assets (see Note 8)	313		300		937		884
Investment expenses:
Derivative trading commission	(3)		(1)		(5)		(2)
Depreciation on real estate	(2)		(4)		(8)		(8)
Expenses related to consolidated entities (2)	(26)		(8)		(62)		(24)
Other investment income (expense) (3)	(18)		(16)		(53)		(53)
Total investment expenses	(49)		(29)		(128)		(87)
Net investment income	$	640	$	837	$	2,022	$	2,568

(1) Includes unrealized gains and losses on trading securities and includes $(8) million and $(103) million for the three and nine months ended September 30, 2022, respectively, and $(1) million and $37 million for the three and nine months ended September 30, 2021, respectively, related to the change in fair value for securities carried under the fair value option.

(2) Includes interest expense and change in fair value related to notes issued by consolidated VIE's, management fees, administrative fees, legal fees, and other expenses related to the consolidation of certain investments.

(3) Includes interest expense, investment software expense, custodial fees, and other bank fees; institutional product issuance related expenses; and other expenses.

Unrealized gains (losses) included in investment income that were recognized on equity securities held were $(17) million and $6 million, for the three months ended September 30, 2022 and 2021, respectively, and $(48) million and $21 million, for the nine months ended September 30, 2022 and 2021, respectively.

25

Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 4. Investments

Net Gains (Losses) on Derivatives and Investments

The following table summarizes net gains (losses) on derivatives and investments (in millions):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Available-for-sale securities
Realized gains on sale	$	3	$	28	$	32	$	149
Realized losses on sale	(57)		(1)		(298)		(59)
Credit loss income (expense)	(6)		(17)		(5)		(10)
Credit loss income (expense) on mortgage loans	(5)		14		(2)		62
Other (1)	59		13		142		62
Net gains (losses) excluding derivatives and funds withheld assets	(6)		37		(131)		204
Net gains (losses) on derivative instruments (see Note 5)	870		(1,301)		4,362		(1,413)
Net gains (losses) on funds withheld reinsurance treaties (see Note 8)	555		(115)		2,660		15
Total net gains (losses) on derivatives and investments	$	1,419	$	(1,379)	$	6,891	$	(1,194)
(1) Includes the foreign currency gain or loss related to foreign denominated trust instruments supporting funding agreements.

Net gains (losses) on funds withheld reinsurance treaties represents income (loss) from the sale of investments held in segregated funds withheld accounts in support of reinsurance agreements for which Jackson retains legal ownership of the underlying investments. These gains (losses) are increased or decreased by changes in the embedded derivative liability related to the Athene Reinsurance Agreement and also include (i) changes in the related funds withheld payable, as all economic performance of the investments held in the segregated accounts inure to the benefit of the reinsurers under the respective reinsurance agreements with each reinsurer, and (ii) amortization of the difference between book value and fair value of the investments as of the effective date of the reinsurance agreements with each reinsurer.

The aggregate fair value of securities sold at a loss for the three and nine months ended September 30, 2022 was $1,068 million and $3,966 million, which was approximately 94% and 93% of book value, respectively. The aggregate fair value of securities sold at a loss for the three and nine months ended September 30, 2021 was $161 million and $1,345 million, which was approximately 98% and 95% of book value, respectively.

Proceeds from sales of available-for-sale debt securities were $1.4 billion and $6.3 billion during the three and nine months ended September 30, 2022, respectively, and $1.0 billion and $1.9 billion during the three and nine months ended September 30, 2021, respectively.

There are inherent uncertainties in assessing the fair values assigned to the Company’s investments. The Company’s reviews of net present value and fair value involve several criteria including economic conditions, credit loss experience, other issuer-specific developments and estimated future cash flows. These assessments are based on the best available information at the time. Factors such as market liquidity, the widening of bid/ask spreads and a change in the cash flow assumptions can contribute to future price volatility. If actual experience differs negatively from the assumptions and other considerations used in the consolidated financial statements, unrealized losses currently reported in accumulated other comprehensive income (loss) may be recognized in the consolidated income statements in future periods.

The Company currently has no intent to sell securities with unrealized losses considered to be temporary until they mature or recover in value and believes that it has the ability to do so. However, if the specific facts and circumstances surrounding an individual security, or the outlook for its industry sector change, the Company may sell the security prior to its maturity or recovery and realize a loss.

26

Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 4. Investments

Consolidated Variable Interest Entities ("VIEs")

The Company funds affiliated limited liability companies to facilitate the issuance of collateralized loan obligations. The Company concluded that these limited liability companies are VIEs and that the Company is the primary beneficiary as it has the power to direct the most significant activities affecting the performance of the entity as well as the obligation to absorb losses or the right to receive benefits that could potentially be significant to the entity. In April 2022, the Company reinvested in collateralized loan obligation issuances resulting in an increase of consolidated assets and liabilities. The Company’s exposure to loss is limited to the capital invested and unfunded capital commitments.

Private Equity Funds III – VIII are limited partnership structures that invest the ownership capital in portfolios of various other limited partnership structures. The Company concluded that the Private Equity Funds are VIEs and that the Company is the primary beneficiary as it has the power to direct the most significant activities affecting the performance of the funds as well as the obligation to absorb losses or the right to receive benefits that could potentially be significant to the funds. In the fourth quarter of 2021, the Company entered into a commitment to invest up to $300 million in the newly formed Private Equity Fund VIII. The Company’s exposure to loss is limited to the capital invested and unfunded capital commitments.

PPM has created and managed institutional share class mutual funds, where Jackson seeds new funds, or new share classes within a fund, when deemed necessary to develop the requisite track record prior to allowing investment by external parties. Jackson may sell its interest in the fund once opened to investment by external parties. The Company concluded that these funds are VIEs and that the Company is the primary beneficiary as it has both the power to direct the most significant activities of the VIE as well as the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. The Company’s exposure to loss related to these mutual funds is limited to the capital invested.

Asset and liability information for the consolidated VIEs included on the Condensed Consolidated Balance Sheets are as follows (in millions):

	September 30, 2022		December 31, 2021
Assets
Debt securities, at fair value under fair value option	$	1,965	$	1,546
Debt securities, trading	102		117
Equity securities	111		129
Other invested assets	1,496		1,309
Cash and cash equivalents	53		120
Other assets	18		45
Total assets	$	3,745	$	3,266
Liabilities
Notes issued by consolidated VIEs, at fair value under fair value option	$	1,745	$	1,404
Other liabilities	407		307
Total other liabilities	2,152		1,711
Securities lending payable	5		4
Total liabilities	$	2,157	$	1,715
Equity
Noncontrolling interests	$	729	$	680

27

Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 4. Investments

Unconsolidated VIEs

The Company invests in certain limited partnerships ("LPs") and limited liability companies ("LLCs") that it has concluded are VIEs. Based on the analysis of these entities, the Company is not the primary beneficiary of the VIEs as it does not have the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance. In addition, the Company does not have the obligation to absorb losses or the right to receive benefits that could potentially be significant to the entities. Therefore, the Company does not consolidate these VIEs and the carrying amounts of the Company’s investments in these LPs and LLCs are recognized in other invested assets on the Condensed Consolidated Balance Sheets. Unfunded capital commitments for these investments are detailed in Note 14. The Company’s exposure to loss is limited to the capital invested and unfunded capital commitments related to the LPs/LLCs, which was $4,321 million and $3,860 million as of September 30, 2022 and December 31, 2021, respectively. The capital invested in an LP or LLC equals the original capital contributed, increased for additional capital contributed after the initial investment, and reduced for any returns of capital from the LP or LLC. LPs and LLCs are carried at fair value.

The Company invests in certain mutual funds that it has concluded are VIEs. Based on the analysis of these entities, the Company is not the primary beneficiary of the VIEs. Mutual funds for which the Company does not have the obligation to absorb losses or the right to receive benefits that could potentially be significant to the entities are recognized in equity securities on the Condensed Consolidated Balance Sheets and were $26 million and $33 million as of September 30, 2022 and December 31, 2021, respectively. The Company’s maximum exposure to loss on these mutual funds is limited to the amortized cost for these investments.

The Company makes investments in structured debt securities issued by VIEs for which they are not the manager. These structured debt securities include RMBS, Commercial Mortgage-Backed Securities ("CMBS"), and asset-backed securities ("ABS"). The Company does not consolidate the securitization trusts utilized in these transactions because they do not have the power to direct the activities that most significantly impact the economic performance of these securitization trusts. The Company does not consider its continuing involvement with these VIEs to be significant because they either invest in securities issued by the VIE and were not involved in the design of the VIE or no transfers have occurred between the Company and the VIE. The Company’s maximum exposure to loss on these structured debt securities is limited to the amortized cost of these investments. The Company does not have any further contractual obligations to the VIE. The Company recognizes the variable interest in these VIEs at fair value on the consolidated balance sheets.

Commercial and Residential Mortgage Loans

Commercial mortgage loans of $10.5 billion and $10.5 billion at September 30, 2022 and December 31, 2021, respectively, are reported net of an allowance for credit losses of $76 million and $85 million at each date, respectively. At September 30, 2022, commercial mortgage loans were collateralized by properties located in 38 states, the District of Columbia, and Europe. Accrued interest receivable on commercial mortgage loans was $37 million and $32 million at September 30, 2022 and December 31, 2021, respectively.

Residential mortgage loans of $1,280 million and $939 million at September 30, 2022 and December 31, 2021, respectively, are reported net of an allowance for credit losses of $3 million and $9 million at each date, respectively. Loans were collateralized by properties located in 50 states, the District of Columbia, Mexico, and Europe. Accrued interest receivable on residential mortgage loans was $9 million and $13 million at September 30, 2022 and December 31, 2021, respectively.

28

Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 4. Investments

Mortgage Loan Concessions

In response to the adverse economic impact of the COVID-19 pandemic, the Company granted concessions to certain of its commercial mortgage loan borrowers, including payment deferrals and other loan modifications. The Company has elected the option under the Coronavirus Aid, Relief, and Economic Security Act, the Consolidated Appropriations Act of 2021, and the Interagency Statement on Loan Modifications and Reporting for Financial Institutions Working with Customers Affected by the Coronavirus (Revised) not to account for or report qualifying concessions as troubled debt restructurings and does not classify such loans as past due during the payment deferral period. Additionally, in accordance with the FASB’s published response to a COVID-19 Pandemic technical inquiry, the Company continues to accrue interest income on such loans that have deferred payment. For some commercial mortgage loan borrowers (principally in the hotel and retail sectors), the Company granted concessions which were primarily interest and/or principal payment deferrals generally ranging from 6 to 14 months and, to a much lesser extent, maturity date extensions. Repayment periods are generally within one year but may extend until maturity date. Deferred commercial mortgage loan interest and principal payments were $11 million at September 30, 2022. The concessions granted had no impact on the Company’s results of operations or financial position as the Company has not granted concessions that would have been disclosed and accounted for as troubled debt restructurings.

Evaluation for Credit Losses on Mortgage Loans

The Company reviews mortgage loans that are not carried at fair value under the fair value option on a quarterly basis to estimate the ACL with changes in the ACL recorded in net gains (losses) on derivatives and investments. Apart from an ACL recorded on individual mortgage loans where the borrower is experiencing financial difficulties, the Company records an ACL on the pool of mortgage loans based on lifetime expected credit losses. The Company utilizes a third-party forecasting model to estimate lifetime expected credit losses at a loan level for mortgage loans. The model forecasts net operating income and property values for the economic scenario selected. The debt service coverage ratios (“DSCR”) and loan to values (“LTV”) are calculated over the forecastable period by comparing the projected net operating income and property valuations to the loan payment and principal amounts of each loan. The model utilizes historical mortgage loan performance based on DSCRs and LTV to derive probability of default and expected losses based on the economic scenario that is similar to the Company’s expectations of economic factors such as unemployment, gross domestic product growth, and interest rates. The Company determined the forecastable period to be reasonable and supportable for a period of two years beyond the end of the reporting period. Over the following one-year period, the model reverts to the historical performance of the portfolio for the remainder of the contractual term of the loans. In cases where the Company does not have an appropriate length of historical performance, the relevant historical rate from an index or the lifetime expected credit loss calculated from the model may be used.

Unfunded commitments are included in the model and an ACL is determined accordingly. Credit loss estimates are pooled by property type and the Company does not include accrued interest in the determination of ACL.

For individual loans or for types of loans for which the third-party model is deemed not suitable, the Company utilizes relevant current market data, industry data, and publicly available historical loss rates to calculate an estimate of the lifetime expected credit loss.

Mortgage loans on real estate deemed uncollectible are charged against the ACL, and subsequent recoveries, if any, are credited to the ACL, limited to the aggregate of amounts previously charged-off and expected to be charged-off. Mortgage loans on real estate are presented net of the allowance for credit losses on the Condensed Consolidated Balance Sheets.

29

Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 4. Investments

The following table provides a summary of the allowance for credit losses in the Company’s mortgage loan portfolios (in millions):

Three Months Ended September 30, 2022	Apartment		Hotel		Office		Retail		Warehouse		Residential Mortgage		Total
Balance at July 1, 2022	$	21	$	18	$	16	$	13	$	9	$	3	$	80
Charge offs, net of recoveries	—		—		—		—		—		—		—
Provision (release)	(5)		(1)		(3)		8		—		—		(1)
Balance at September 30, 2022 (1)	$	16	$	17	$	13	$	21	$	9	$	3	$	79

Three Months Ended September 30, 2021	Apartment		Hotel		Office		Retail		Warehouse		Residential Mortgage		Total
Balance at July 1, 2021	$	26	$	33	$	20	$	23	$	12	$	21	$	135
Charge offs, net of recoveries	—		—		—		—		—		—		—
Provision (release)	(5)		(18)		3		(7)		(1)		(11)		(39)
Balance at September 30, 2021 (1)	$	21	$	15	$	23	$	16	$	11	$	10	$	96

Nine Months Ended September 30, 2022	Apartment		Hotel		Office		Retail		Warehouse		Residential Mortgage		Total
Balance at January 1, 2022	$	19	$	9	$	28	$	17	$	12	$	9	$	94
Charge offs, net of recoveries	—		—		—		—		—		—		—
Provision (release)	(3)		8		(15)		4		(3)		(6)		(15)
Balance at September 30, 2022 (1)	$	16	$	17	$	13	$	21	$	9	$	3	$	79

Nine Months Ended September 30, 2021	Apartment		Hotel		Office		Retail		Warehouse		Residential Mortgage		Total
Balance at January 1, 2021	$	58	$	34	$	25	$	24	$	24	$	14	$	179
Charge offs, net of recoveries	—		—		—		—		—		—		—
Provision (release)	(37)		(19)		(2)		(8)		(13)		(4)		(83)
Balance at September 30, 2021 (1)	$	21	$	15	$	23	$	16	$	11	$	10	$	96

(1) Accrued interest receivable totaled $46 million and $48 million as of September 30, 2022 and 2021, respectively, and was excluded from the determination of credit losses.

The Company’s mortgage loans that are current and in good standing are accruing interest. Interest is not accrued on loans greater than 90 days delinquent and in process of foreclosure, when deemed uncollectible. Delinquency status is determined from the date of the first missed contractual payment.

At September 30, 2022, there was $17 million of recorded investment, $18 million of unpaid principal balance, no related loan allowance, $15 million of average recorded investment, and no investment income recognized on impaired residential mortgage loans.

At December 31, 2021, there was $6 million of recorded investment, $7 million of unpaid principal balance, no related loan allowance, $2 million of average recorded investment, and no investment income recognized on impaired residential mortgage loans.

30

Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 4. Investments

The following tables provide information about the credit quality with vintage year and category of mortgage loans (in millions):

	September 30, 2022
	2022		2021		2020		2019		2018		Prior		Revolving Loans		Total		% of Total
Commercial mortgage loans
Loan to value ratios:
Less than 70%	$	518	$	1,288	$	1,305	$	1,528	$	1,458	$	3,637	$	4	$	9,738	93	%
70% - 80%	80		342		44		14		52		143		—		675		6	%
80% - 100%	—		—		—		25		4		—		—		29		—	%
Greater than 100%	—		—		—		—		—		9		—		9		—	%
Total commercial mortgage loans	598		1,630		1,349		1,567		1,514		3,789		4		10,451		100	%
Debt service coverage ratios:
Greater than 1.20x	548		1,071		957		1,439		1,345		3,456		4		8,820		84	%
1.00x - 1.20x	50		427		250		84		35		185		—		1,031		10	%
Less than 1.00x	—		132		142		44		134		148		—		600		6	%
Total commercial mortgage loans	598		1,630		1,349		1,567		1,514		3,789		4		10,451		100	%
Residential mortgage loans
Performing	473		256		227		19		14		218		—		1,207		94	%
Nonperforming (2)	2		3		11		5		6		46		—		73		6	%
Total residential mortgage loans	475		259		238		24		20		264		—		1,280		100	%
Total mortgage loans	$	1,073	$	1,889	$	1,587	$	1,591	$	1,534	$	4,053	$	4	$	11,731	100	%

	December 31, 2021
	2021		2020		2019		2018		2017		Prior		Revolving Loans		Total		% of Total
Commercial mortgage loans
Loan to value ratios:
Less than 70%	$	1,270	$	1,346	$	1,592	$	1,599	$	1,305	$	2,703	$	4	$	9,819	93	%
70% - 80%	345		35		—		52		85		153		—		670		6	%
80% - 100%	—		—		39		5		—		—		—		44		—	%
Greater than 100%	—		—		—		—		—		10		—		10		—	%
Total commercial mortgage loans	1,615		1,381		1,631		1,656		1,390		2,866		4		10,543		100	%
Debt service coverage ratios:
Greater than 1.20x	796		974		1,532		1,293		1,257		2,609		4		8,465		80	%
1.00x - 1.20x	651		329		81		90		11		68		—		1,230		12	%
Less than 1.00x	168		78		18		273		122		189		—		848		8	%
Total commercial mortgage loans	1,615		1,381		1,631		1,656		1,390		2,866		4		10,543		100	%
Residential mortgage loans
Performing	268		22		18		16		7		396		—		727		77	%
Nonperforming (2)	4		44		22		19		23		100		—		212		23	%
Total residential mortgage loans	272		66		40		35		30		496		—		939		100	%
Total mortgage loans	$	1,887	$	1,447	$	1,671	$	1,691	$	1,420	$	3,362	$	4	$	11,482	100	%

31

Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 4. Investments

	September 30, 2022
	In Good Standing (1)		Restructured		Greater than 90 Days Delinquent		In the Process of Foreclosure		Total Carrying Value
Apartment	$	3,775	$	—	$	—	$	—	$	3,775
Hotel	1,025		—		—		—		1,025
Office	1,885		—		—		—		1,885
Retail	2,093		—		—		—		2,093
Warehouse	1,673		—		—		—		1,673
Total commercial	10,451		—		—		—		10,451
Residential (2)	1,207		—		56		17		1,280
Total	$	11,658	$	—	$	56	$	17	$	11,731

	December 31, 2021
	In Good Standing (1)		Restructured		Greater than 90 Days Delinquent		In the Process of Foreclosure		Total Carrying Value
Apartment	$	3,755	$	—	$	—	$	—	$	3,755
Hotel	1,054		—		—		—		1,054
Office	1,889		—		—		—		1,889
Retail	2,104		—		—		—		2,104
Warehouse	1,741		—		—		—		1,741
Total commercial	10,543		—		—		—		10,543
Residential (2)	727		—		206		6		939
Total	$	11,270	$	—	$	206	$	6	$	11,482

(1)     At September 30, 2022 and December 31, 2021, includes mezzanine loans of $379 million and $278 million in the Apartment category, $41 million and $75 million in the Hotel category, $237 million and $252 million in the Office category, $27 million and $27 million in the Retail category, and $56 million and $26 million in the Warehouse category, respectively.

(2)    At September 30, 2022 and December 31, 2021, includes $48 million and $202 million of loans purchased when the loans were greater than 90 days delinquent and $14 million and $5 million of loans in process of foreclosure, and are supported with insurance or other guarantees provided by various governmental programs, respectively.

As of September 30, 2022 and December 31, 2021, there were no commercial mortgage loans involved in troubled debt restructuring, and stressed mortgage loans for which the Company is dependent, or expects to be dependent, on the underlying property to satisfy repayment were $4 million and nil, respectively.

Other Invested Assets

Other invested assets primarily include investments in Federal Home Loan Bank capital stock, limited partnerships (“LPs”), and real estate. Federal Home Loan Bank capital stock is carried at cost and adjusted for any impairment. At September 30, 2022 and December 31, 2021, FHLB capital stock had carrying value of $146 million and $125 million, respectively. Real estate is carried at the lower of depreciated cost or fair value. At September 30, 2022 and December 31, 2021, real estate totaling $238 million and $243 million, respectively, included foreclosed properties with a book value of nil and $1 million at September 30, 2022 and December 31, 2021, respectively. Carrying values for limited partnership investments are generally determined by using the proportion of the Company’s investment in each fund (Net Asset Value (“NAV”) equivalent) as a practical expedient for fair value, and generally are recorded on a three-month lag, with changes in value included in net investment income. At September 30, 2022 and December 31, 2021, investments in LPs had carrying values of $3,238 million and $2,831 million, respectively.

In June 2021, the Company entered into an arrangement to sell $420 million of limited partnership investments, of which $236 million and $168 million were sold in the second and third quarter of 2021, respectively, and the remainder was sold in January 2022. The LPs sold were carried at estimated sales price. The Company expects to reinvest in new LPs as attractive opportunities become available.

32

Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 4. Investments

Securities Lending

The Company has entered into securities lending agreements with agent banks whereby blocks of securities are loaned to third parties, primarily major brokerage firms. As of September 30, 2022 and December 31, 2021, the estimated fair value of loaned securities was $25 million and $17 million, respectively. The agreements require a minimum of 102% of the fair value of the loaned securities to be held as collateral, calculated daily. To further minimize the credit risks related to these programs, the financial condition of counterparties is monitored on a regular basis. At September 30, 2022 and December 31, 2021, cash collateral received in the amount of $27 million and $17 million, respectively, was invested by the agent banks and included in cash and cash equivalents of the Company. A securities lending payable for the overnight and continuous loans is included in liabilities in the amount of cash collateral received. Securities lending transactions are used to generate income. Income and expenses associated with these transactions are reported as net investment income.

Repurchase Agreements

The Company routinely enters into repurchase agreements whereby the Company agrees to sell and repurchase securities. These agreements are accounted for as financing transactions, with the assets and associated liabilities included in the Condensed Consolidated Balance Sheets. Short-term borrowings under such agreements averaged $186 million for nine months ended September 30, 2022 and $1,548 million for the year ended December 31, 2021, with weighted average interest rates of 0.24% and 0.07%, respectively. At September 30, 2022 and December 31, 2021, the outstanding repurchase agreement balance was nil and $1,572 million, respectively, collateralized with U.S. Treasury notes and corporate securities and maturing within 30 days, and was included within repurchase agreements and securities lending payable in the Condensed Consolidated Balance Sheets. In the event of a decline in the fair value of the pledged collateral under these agreements, the Company may be required to transfer cash or additional securities as pledged collateral. Interest expense totaled nil both for the three and nine months ended September 30, 2022, respectively, and nil and $1 million for the three and nine months ended September 30, 2021. The highest level of short-term borrowings at any month end was $584 million and $2,349 million for the nine months ended September 30, 2022 and 2021, respectively.

33

Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 5. Derivative Instruments

5. Derivative Instruments

The Company’s business model includes the acceptance, monitoring and mitigation of risk. Specifically, the Company considers, among other factors, exposures to interest rate and equity market movements, foreign exchange rates and other asset or liability prices. The Company uses derivative instruments to mitigate or reduce these risks in accordance with established policies and goals. The Company’s derivative holdings, while effective in managing defined risks, are not structured to meet accounting requirements to be designated as hedging instruments. As a result, freestanding derivatives are carried at fair value with changes recorded in net gains (losses) on derivatives and investments.

A summary of the aggregate contractual or notional amounts and fair values of the Company’s freestanding and embedded derivative instruments are as follows (in millions):

	September 30, 2022
	Contractual/		Assets		Liabilities		Net
	Notional		Fair		Fair		Fair Value
	Amount (1)		Value		Value		Asset (Liability)
Freestanding derivatives
Cross-currency swaps	$	1,825	$	92	$	166	$	(74)
Equity index call options	15,500		27		—		27
Equity index futures (2)	28,891		—		—		—
Equity index put options	33,000		1,564		—		1,564
Interest rate swaps	7,728		4		238		(234)
Interest rate swaps - cleared (2)	1,500		—		—		—
Put-swaptions	22,000		—		1,781		(1,781)
Interest rate futures (2)	55,071		—		—		—
Total return swaps	739		80		—		80
Total freestanding derivatives	166,254		1,767		2,185		(418)
Embedded derivatives
Variable annuity embedded derivatives (3)	N/A		484		—		484
Fixed index annuity embedded derivatives (4)	N/A		—		967		(967)
Registered index linked annuity embedded derivatives (4)	N/A		—		10		(10)
Total embedded derivatives	N/A		484		977		(493)
Derivatives related to funds withheld under reinsurance treaties
Cross-currency swaps	158		32		—		32
Cross-currency forwards	1,460		151		40		111
Funds withheld embedded derivative (5)	N/A		3,332		—		3,332
Total derivatives related to funds withheld under reinsurance treaties	1,618		3,515		40		3,475
Total	$	167,872	$	5,766	$	3,202	$	2,564

(1) The notional amount for swaps and swaptions represents the stated principal balance used as a basis for calculating payments. The contractual amount for futures and options represents the market exposure of open positions.

(2) Variation margin is considered settlement resulting in the netting of cash received/paid for variation margin against the fair value of the trades.

(3) Included within reserves for future policy benefits and claims payable on the Condensed Consolidated Balance Sheets. The nonperformance risk adjustment is included in the balance above.

(4) Included within other contract holder funds on the Condensed Consolidated Balance Sheets. The nonperformance risk adjustment is included in the balance above.

(5) Included within funds withheld payable under reinsurance treaties on the Condensed Consolidated Balance Sheets.

34

Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 5. Derivative Instruments

	December 31, 2021
	Contractual/		Assets		Liabilities		Net
	Notional		Fair		Fair		Fair Value
	Amount (1)		Value		Value		Asset (Liability)
Freestanding derivatives
Cross-currency swaps	$	1,767	$	55	$	35	$	20
Equity index call options	21,000		606		—		606
Equity index futures (2)	18,258		—		—		—
Equity index put options	27,500		150		—		150
Interest rate swaps	7,728		430		—		430
Interest rate swaps - cleared (2)	1,500		—		—		—
Put-swaptions	19,000		133		—		133
Interest rate futures (2)	912		—		—		—
Total return swaps	—		—		—		—
Total freestanding derivatives	97,665		1,374		35		1,339
Embedded derivatives
Variable annuity embedded derivatives (3)	N/A		—		2,626		(2,626)
Fixed index annuity embedded derivatives (4)	N/A		—		1,439		(1,439)
Registered index linked annuity embedded derivatives (4)	N/A		—		6		(6)
Total embedded derivatives	N/A		—		4,071		(4,071)
Derivatives related to funds withheld under reinsurance treaties
Cross-currency swaps	158		10		1		9
Cross-currency forwards	1,119		33		5		28
Funds withheld embedded derivative (5)	N/A		—		120		(120)
Total derivatives related to funds withheld under reinsurance treaties	1,277		43		126		(83)
Total	$	98,942	$	1,417	$	4,232	$	(2,815)

(1) The notional amount for swaps and swaptions represents the stated principal balance used as a basis for calculating payments. The contractual amount for futures and options represents the market exposure of open positions.

(2) Variation margin is considered settlement resulting in the netting of cash received/paid for variation margin against the fair value of the trades.

(3) Included within reserves for future policy benefits and claims payable on the Condensed Consolidated Balance Sheets. The nonperformance risk adjustment is included in the balance above.

(4) Included within other contract holder funds on the Condensed Consolidated Balance Sheets. The nonperformance risk adjustment is included in the balance above.

(5) Included within funds withheld payable under reinsurance treaties on the Condensed Consolidated Balance Sheets.

35

Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 5. Derivative Instruments

The following table reflects the results of the Company’s derivatives, including gains (losses) and change in fair value of freestanding derivative instruments and embedded derivatives (in millions):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Derivatives excluding funds withheld under reinsurance treaties
Cross-currency swaps	$	(19)	$	(9)	$	(101)	$	(53)
Equity index call options	(275)		16		(1,506)		814
Equity index futures	1,038		(196)		5,279		(2,866)
Equity index put options	168		(71)		675		(682)
Interest rate swaps	(202)		—		(613)		(148)
Interest rate swaps - cleared	(67)		(10)		(204)		(60)
Put-swaptions	(751)		(62)		(1,905)		42
Interest rate futures	(179)		(123)		(491)		(896)
Total return swaps	39		—		47		—
Fixed index annuity embedded derivatives	—		(1)		5		(3)
Registered index linked annuity embedded derivative	58		—		121		—
Variable annuity embedded derivatives	1,060		(845)		3,055		2,439
Total net gains (losses) on derivative instruments excluding derivative instruments related to funds withheld under reinsurance treaties	870		(1,301)		4,362		(1,413)
Derivatives related to funds withheld under reinsurance treaties
Cross-currency swaps	9		6		24		11
Cross-currency forwards	67		28		136		42
Funds withheld embedded derivative	824		101		3,452		555
Total net gains (losses) on derivative instruments related to funds withheld under reinsurance treaties	900		135		3,612		608
Total net gains (losses) on derivative instruments including derivative instruments related to funds withheld under reinsurance treaties	$	1,770	$	(1,166)	$	7,974	$	(805)

All the Company’s trade agreements for freestanding, over-the-counter derivatives, contain credit downgrade provisions that allow a party to assign or terminate derivative transactions if the counterparty’s credit rating declines below an established limit. At September 30, 2022 and December 31, 2021, the fair value of the Company’s net non-cleared, over-the-counter derivative assets by counterparty were $1,453 million and $1,376 million, respectively, and held collateral was $1,343 million and $1,576 million, respectively, related to these agreements. At September 30, 2022 and December 31, 2021, the fair value of the Company’s net non-cleared, over-the-counter derivative liabilities by counterparty were $1,728 million and nil, respectively, and provided collateral was $1,707 million and nil, respectively, related to these agreements. If all the downgrade provisions had been triggered at September 30, 2022 and December 31, 2021, in aggregate, the Company would have had to disburse $21 million and $200 million, respectively, and would have been allowed to claim $110 million and nil, respectively.

Offsetting Assets and Liabilities

The Company’s derivative instruments, repurchase agreements and securities lending agreements are subject to master netting arrangements and collateral arrangements. A master netting arrangement with a counterparty creates a right of offset for amounts due to and due from that same counterparty that is enforceable in the event of a default or bankruptcy. The Company recognizes amounts subject to master netting arrangements on a gross basis within the Condensed Consolidated Balance Sheets.

36

Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 5. Derivative Instruments

The following tables present the gross and net information about the Company’s financial instruments subject to master netting arrangements (in millions):

	September 30, 2022
	Gross Amounts Recognized		Gross Amounts Offset in the Condensed Consolidated Balance Sheets		Net Amounts Presented in the Condensed Consolidated Balance Sheets
							Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets
							Financial Instruments (1)		Cash Collateral		Securities Collateral (2)		Net Amount
Financial Assets:
Freestanding derivative
assets	$	1,950	$	—	$	1,950	$	496	$	1,031	$	310	$	113
Financial Liabilities:
Freestanding derivative
liabilities	$	2,225	$	—	$	2,225	$	496	$	313	$	1,365	$	51
Securities loaned	27		—		27		—		27		—		—
Repurchase agreements	—		—		—		—		—		—		—
Total financial liabilities	$	2,252	$	—	$	2,252	$	496	$	340	$	1,365	$	51

(1) Represents the amount that could be offset under master netting or similar arrangements that management elects not to offset on the Condensed Consolidated Balance Sheets.

(2) Excludes initial margin amounts for exchange-traded derivatives.

	December 31, 2021
	Gross Amounts Recognized		Gross Amounts Offset in the Condensed Consolidated Balance Sheets		Net Amounts Presented in the Condensed Consolidated Balance Sheets
							Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets
							Financial Instruments (1)		Cash Collateral		Securities Collateral (2)		Net Amount
Financial Assets:
Freestanding derivative
assets	$	1,417	$	—	$	1,417	$	41	$	817	$	555	$	4
Financial Liabilities:
Freestanding derivative
liabilities	$	41	$	—	$	41	$	41	$	—	$	—	$	—
Securities loaned	17		—		17		—		17		—		—
Repurchase agreements	1,572		—		1,572		—		—		1,572		—
Total financial liabilities	$	1,630	$	—	$	1,630	$	41	$	17	$	1,572	$	—

(1) Represents the amount that could be offset under master netting or similar arrangements that management elects not to offset on the Condensed Consolidated Balance Sheets.

(2) Excludes initial margin amounts for exchange-traded derivatives.

In the above tables, the amounts of assets or liabilities presented in the Company’s Condensed Consolidated Balance Sheets are offset first by financial instruments that have the right of offset under master netting or similar arrangements with any remaining amount reduced by the amount of cash and securities collateral. The actual amount of collateral may be greater than amounts presented in the tables. The above tables exclude net embedded derivative liabilities of $493 million and $4,071 million as of September 30, 2022 and December 31, 2021, respectively, as these derivatives are not subject to master netting arrangements. The above tables also exclude the funds withheld embedded derivative asset (liability) of $3,332 million and $(120) million at September 30, 2022 and December 31, 2021.

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Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 6. Fair Value Measurements

6. Fair Value Measurements

The following table summarizes the fair value and carrying value of the Company’s financial instruments (in millions):

		September 30, 2022				December 31, 2021
		Carrying Value		Fair Value		Carrying Value		Fair Value
Assets
	Debt securities (1)	$	43,907	$	43,907	$	53,375	$	53,375
	Equity securities	234		234		279		279
	Mortgage loans (1)	11,731		11,093		11,482		11,910
	Limited partnerships	3,238		3,238		2,831		2,831
	Policy loans (1)	4,446		4,446		4,475		4,475
	Freestanding derivative instruments	1,950		1,950		1,417		1,417
	Federal Home Loan Bank of Indianapolis ("FHLBI") capital stock	146		146		125		125
	Cash and cash equivalents	5,331		5,331		2,623		2,623
	Guaranteed minimum income benefits ("GMIB") reinsurance recoverable	207		207		262		262
	Separate account assets	185,042		185,042		248,949		248,949
Liabilities
	Annuity reserves (2)	37,390		32,592		40,389		50,116
	Reserves for guaranteed investment contracts (3)	1,162		1,124		894		923
	Trust instruments supported by funding agreements (3)	4,944		4,765		5,986		6,175
	FHLB funding agreements (3)	2,252		2,385		1,950		1,938
	Funds withheld payable under reinsurance treaties (1)	23,900		23,900		29,007		29,007
	Long-term debt	2,634		2,339		2,649		2,745
	Securities lending payable	27		27		17		17
	Freestanding derivative instruments	2,225		2,225		41		41
	Notes issued by consolidated VIEs	1,745		1,745		1,404		1,404
	Repurchase agreements	—		—		1,572		1,572
	Separate account liabilities	185,042		185,042		248,949		248,949
(1) Includes items carried at fair value under the fair value option and trading securities. (2) Annuity reserves represent only the components of other contract holder funds and reserves for future policy benefits and claims payable that are considered to be financial instruments. (3) Included as a component of other contract holder funds on the Condensed Consolidated Balance Sheets.

The following is a discussion of the methodologies used to determine fair values of the financial instruments measured on both a recurring and nonrecurring basis reported in the following tables.

Debt and Equity Securities

The fair values for debt and equity securities are determined using information available from independent pricing services, broker-dealer quotes, or internally derived estimates. Priority is given to publicly available prices from independent sources, when available. Securities for which the independent pricing service does not provide a quotation are either submitted to independent broker-dealers for prices or priced internally. Typical inputs used by these three pricing methods include reported trades, benchmark yields, credit spreads, liquidity premiums and/or estimated cash flows based on default and prepayment assumptions.

As a result of typical trading volumes and the lack of specific quoted market prices for most debt securities, independent pricing services will normally derive the security prices through recently reported trades for identical or similar securities, making adjustments through the reporting date based upon available market observable information as outlined above. If there are no recently reported trades, the independent pricing services and broker-dealers may use matrix or pricing model processes to develop a security price where future cash flow expectations are developed based upon collateral performance and discounted at relevant market rates. Certain securities are priced using broker-dealer quotes, which may utilize

38

Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 6. Fair Value Measurements

proprietary inputs and models. Additionally, the majority of these quotes are non-binding.

Included in the pricing of asset-backed securities are estimates of the rate of future prepayments of principal over the remaining life of the securities. Such estimates are derived based on the characteristics of the underlying structure and prepayment assumptions believed to be relevant for the underlying collateral. Actual prepayment experience may vary from these estimates.

Internally derived estimates may be used to develop a fair value for securities for which the Company is unable to obtain either a reliable price from an independent pricing service or a suitable broker-dealer quote. These fair value estimates may incorporate Level 2 and Level 3 inputs and are generally derived using expected future cash flows, discounted at market interest rates available from market sources based on the credit quality and duration of the instrument. For securities that may not be reliably priced using these internally developed pricing models, a fair value may be estimated using indicative market prices. These prices are indicative of an exit price, but the assumptions used to establish the fair value may not be observable or corroborated by market observable information and, therefore, represent Level 3 inputs.

The Company performs an analysis on the prices and credit spreads received from third parties to ensure that the prices represent a reasonable estimate of the fair value. This process involves quantitative and qualitative analysis and is overseen by investment and accounting professionals. Examples of procedures performed include initial and ongoing review of third-party pricing service methodologies, review of pricing statistics and trends, back testing recent trades and monitoring of trading volumes. In addition, the Company considers whether prices received from independent broker-dealers represent a reasonable estimate of fair value using internal and external cash flow models, which are developed based on spreads and, when available, market indices. As a result of this analysis, if the Company determines there is a more appropriate fair value based upon the available market data, the price received from the third party may be adjusted accordingly.

For those securities that were internally valued at September 30, 2022 and December 31, 2021, the pricing model used by the Company utilizes current spread levels of similarly rated securities to determine the market discount rate for the security. Furthermore, appropriate risk premiums for illiquidity and non-performance are incorporated in the discount rate. Cash flows, as estimated by the Company using issuer-specific default statistics and prepayment assumptions, are discounted to determine an estimated fair value. 

On an ongoing basis, the Company reviews the independent pricing services’ valuation methodologies and related inputs and evaluates the various types of securities in its investment portfolio to determine an appropriate fair value hierarchy distribution based upon trading activity and the observability of market inputs. Based on the results of this evaluation, each price is classified into Level 1, 2, or 3. Most prices provided by independent pricing services, including broker-dealer quotes, are classified into Level 2 due to their use of market observable inputs.

Limited Partnerships

Fair values for limited partnership interests, which are included in other invested assets, is generally determined using the proportion of the Company’s investment in the value of the net assets of each fund (“NAV equivalent”) as a practical expedient for fair value, and generally, are recorded on a three-month lag. No adjustments to these amounts were deemed necessary at September 30, 2022 and December 31, 2021. As a result of using the net asset value per share practical expedient, limited partnership interests are not classified in the fair value hierarchy.

The Company’s limited partnership interests are not redeemable and distributions received are generally the result of liquidation of the underlying assets of the partnerships. The Company generally has the ability under the partnership agreements to sell its interest to another limited partner with the prior written consent of the general partner. In cases when the Company expects to sell the limited partnership interest, the estimated sales price is used to determine the fair value rather than the practical expedient. These limited partnership interests are classified as Level 2 in the fair value hierarchy.

In cases when a limited partnership’s financial statements are unavailable and a NAV equivalent is not available or practical, an internally developed model is used to determine fair value for that fund. These investments are classified as Level 3 in the fair value hierarchy.

39

Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 6. Fair Value Measurements

Policy Loans

Policy loans are funds provided to policyholders in return for a claim on the policies values and function like demand deposits which are redeemable upon repayment, death or surrender, and there is only one market price at which the transaction could be settled – the then current carrying value. The funds provided are limited to the cash surrender value of the underlying policy. The nature of policy loans is to have a negligible default risk as the loans are fully collateralized by the value of the policy. Policy loans do not have a stated maturity and the balances and accrued interest are repaid either by the policyholder or with proceeds from the policy. Due to the collateralized nature of policy loans and unpredictable timing of payments, the Company believes the carrying value of policy loans approximates fair value. The reinsurance related component of policy loans at fair value under the fair value option have been classified as Level 3 within the fair value hierarchy.

Freestanding Derivative Instruments

Freestanding derivative instruments are reported at fair value, which reflects the estimated amounts, net of payment accruals, which the Company would receive or pay upon sale or termination of the contracts at the reporting date. Changes in fair value are included in net gains (losses) on derivatives and investments. Freestanding derivatives priced using third party pricing services incorporate inputs that are predominantly observable in the market. Inputs used to value derivatives include interest rate swap curves, credit spreads, interest rates, counterparty credit risk, equity volatility and equity index levels.

Freestanding derivative instruments classified as Level 1 include futures, which are traded on active exchanges. Freestanding derivative instruments classified as Level 2 include interest rate swaps, cross currency swaps, cross-currency forwards, credit default swaps, total return swaps, put-swaptions and certain equity index call and put options. These derivative valuations are determined by third-party pricing services using pricing models with inputs that are observable in the market or can be derived principally from, or corroborated by, observable market data. Freestanding derivative instruments classified as Level 3 include interest rate contingent options that are valued by third-party pricing services utilizing significant unobservable inputs.

Cash and Cash Equivalents

Cash and cash equivalents primarily include money market instruments and bank deposits. Cash equivalents also includes all highly liquid securities and other investments purchased with an original or remaining maturity of three months or less at the date of purchase. Certain money market instruments are valued using unadjusted quoted prices in active markets and are classified as Level 1.

Funds Withheld Payable Under Reinsurance Treaties

The funds withheld payable under reinsurance treaties includes both the funds withheld payable which are held at fair value under the fair value option and the funds withheld embedded derivative liability. The fair value of the funds withheld payable which are held at fair value under the fair value option is equal to the fair value of the assets held as collateral, which primarily consists of policy loans using industry standard valuation techniques. The funds withheld embedded derivative liability is determined based upon a total return swap technique referencing the fair value of the investments held under the reinsurance contract and requires certain significant unobservable inputs. The funds withheld payable which are held at fair value under the fair value option and the funds withheld embedded derivative are considered Level 3 in the fair value hierarchy.

Separate Account Assets

Separate account assets are comprised of investments in mutual funds that transact regularly, but do not trade in active markets as they are not publicly available, and, are categorized as Level 2 assets.

40

Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 6. Fair Value Measurements

Variable Annuity Guarantees

Variable annuity contracts issued by the Company offer various guaranteed minimum death, withdrawal, income and accumulation benefits. Certain benefits, including non-life contingent components of guaranteed minimum withdrawal benefits (“GMWB”) and guaranteed minimum withdrawal benefits for life (“GMWB for Life”), guaranteed minimum accumulation benefits (“GMAB”), and the reinsurance recoverable on the Company’s GMIB, are recorded at fair value. Guaranteed benefits that are not subject to fair value accounting are accounted for as insurance benefits. The Company discontinued offering the GMIB in 2009 and GMAB in 2011.

GMABs and non-life contingent components of GMWB and GMWB for Life contracts are recorded at fair value with changes in fair value recorded in net gains (losses) on derivatives and investments. The fair value of the reserve is based on the expectations of future benefit payments and certain future fees associated with the benefits. At the inception of the contract, the Company attributes to the embedded derivative a portion of rider fees collected from the contract holder, which is then held static in future valuations. Those fees, generally referred to as the attributed fees, are set such that the present value of the attributed fees is equal to the present value of future claims expected to be paid under the guaranteed benefit at the inception of the contract. In subsequent valuations, both the present value of future benefits and the present value of attributed fees are revalued based on current market conditions and policyholder behavior assumptions. The difference between each of the two components represents the fair value of the embedded derivative. Thus, when unfavorable equity market movements cause declines in the contract holder’s account value relative to the guarantee benefit, the valuation of future expected claims would generally increase relative to the measurement performed at the inception of the contract, resulting in an increase in the fair value of the embedded derivative liability (and vice versa).

The Company’s GMIB book is reinsured through an unrelated party, and due to the net settlement provisions of the reinsurance agreement, this contract meets the definition of a derivative. Accordingly, the GMIB reinsurance agreement is recorded at fair value, with changes in fair value recorded in net gains (losses) on derivatives and investments. Due to the inability to economically reinsure or hedge new issues of the GMIB, the Company discontinued offering the benefit in 2009.

Fair values for GMWB, GMWB for Life, and GMAB embedded derivatives, as well as GMIB reinsurance recoverables, are calculated using internally developed models because active, observable markets do not exist for those guaranteed benefits.

The fair value calculation is based on the present value of future cash flows comprised of future expected benefit payments, less future attributed rider fees, over the lives of the contracts. Estimating these cash flows requires numerous estimates and subjective judgments related to capital market inputs, as well as actuarially determined assumptions related to expectations concerning policyholder behavior. Capital market inputs include expected market rates of return, market volatility, correlations of market index returns to funds, fund performance and discount rates. The more significant actuarial assumptions include benefit utilization by policyholders, lapse, mortality, and withdrawal rates. Best estimate assumptions plus risk margins are used as applicable.

At each valuation date, the fair value calculation reflects expected returns based on the greater of LIBOR swap rates and constant maturity treasury rates as of that date to determine the value of expected future cash flows produced in a stochastic process. Volatility assumptions are based on a weighting of available market data for implied market volatility for durations up to 10 years, grading to a historical volatility level by year 15, where such long-term historical volatility levels contain an explicit risk margin. Additionally, non-performance risk is incorporated into the calculation by using discount rates based on a blend of yields on similarly-rated peer debt and yields on JFI debt (adjusted to operating company levels). Risk margins are also incorporated into the model assumptions, particularly for policyholder behavior. Estimates of future policyholder behavior are subjective and are based primarily on the Company’s experience.

As markets change, mature and evolve and actual policyholder behavior emerges, management continually evaluates the appropriateness of its assumptions for this component of the fair value model.

41

Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 6. Fair Value Measurements

The use of the models and assumptions described above requires a significant amount of judgment. Management believes the aggregation of each of these components results in an amount that the Company would be required to transfer for a liability, or receive for an asset, to or from a willing buyer or seller, if one existed, for those market participants to assume the risks associated with the guaranteed benefits and the related reinsurance. However, the ultimate settlement amount of the asset or liability, which is currently unknown, could likely be significantly different than this fair value.

Fixed Index Annuities

The fair value of the fixed index annuities embedded option, incorporating such factors as the volatility of returns, the level of interest rates and the time remaining until the option expires, is calculated using the closed form Black-Scholes Option Pricing model or Monte Carlo simulations, as appropriate for the type of option. Additionally, assumed withdrawal rates are used to estimate the expected volume of embedded options that will be realized by policyholders.

RILA

The fair value of the RILA embedded option, incorporating such factors as the volatility of returns, the level of interest rates and the time remaining until the option expires, is calculated using the closed form Black-Scholes Option Pricing model. Additionally, assumed withdrawal rates are used to estimate the expected volume of embedded options that will be realized by policyholders.

Notes Issued by Consolidated VIEs

These notes, at fair value under the fair value option, are based on the fair values of corresponding fixed maturity collateral. The CLO liabilities are also reduced by the fair value of the beneficial interest the Company retains in the CLO and the carrying value of any beneficial interests that represent compensation for services. As the notes are valued based on the reference collateral, they are classified as Level 2.

Fair Value Option

The Company elected the fair value option for debt securities related to certain consolidated investments totaling $1,965 million and $1,546 million at September 30, 2022 and December 31, 2021, respectively. These debt securities are reflected on the Company’s Condensed Consolidated Balance Sheets as debt securities, at fair value under the fair value option.

The Company has elected the fair value option for certain funds withheld assets, which are held as collateral for reinsurance, totaling $4,152 million and $3,632 million at September 30, 2022 and December 31, 2021, respectively, as discussed above, and includes mortgage loans as discussed below.

The Company elected the fair value option for certain mortgage loans held under the funds withheld reinsurance agreement. The fair value option was elected for these mortgage loans, purchased or funded after December 31, 2021, to mitigate inconsistency in earnings that would otherwise result between these mortgage loan assets and the funds withheld liability, including the associated embedded derivative, and are valued using third-party pricing services. Changes in fair value are reflected in net investment income on the Condensed Consolidated Income Statements.

The fair value and aggregate contractual principal for mortgage loans where the fair value option was elected after December 31, 2021, were as follows (in millions):

	September 30,
	2022
Fair value	$	508
Aggregate contractual principal	520

As of September 30, 2022, no loans for which the fair value option was elected were in non-accrual status, and no loans were more than 90 days past due and still accruing interest.

42

Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 6. Fair Value Measurements

The Company elected the fair value option for notes issued by consolidated VIEs totaling $1,745 million and $1,404 million at September 30, 2022 and December 31, 2021, respectively.

Income and changes in unrealized gains and losses on other assets for which the Company has elected the fair value option are immaterial to the Company’s Condensed Consolidated Financial Statements.

Assets and Liabilities Measured at Fair Value on a Recurring Basis

The following tables summarize the Company’s assets and liabilities that are carried at fair value by hierarchy levels (in millions):

		September 30, 2022
		Total		Level 1		Level 2		Level 3
Assets
	Debt securities
	U.S. government securities	$	4,056	$	3,512	$	544	$	—
	Other government securities	1,449		—		1,449		—
	Public utilities	5,109		—		5,109		—
	Corporate securities	25,395		—		25,318		77
	Residential mortgage-backed	455		—		455		—
	Commercial mortgage-backed	1,645		—		1,645		—
	Other asset-backed securities	5,798		—		5,798		—
	Equity securities	234		16		111		107
	Mortgage loans	508		—		—		508
	Limited partnerships (1)	1		—		—		1
	Policy loans	3,487		—		—		3,487
	Freestanding derivative instruments	1,950		—		1,950		—
	Cash and cash equivalents	5,331		5,331		—		—
	GMIB reinsurance recoverable	207		—		—		207
	Separate account assets	185,042		—		185,042		—
	Total	$	240,667	$	8,859	$	227,421	$	4,387
Liabilities
	Embedded derivative liabilities (2)	$	493	$	—	$	977	$	(484)
	Funds withheld payable under reinsurance treaties (3)	314		—		—		314
	Freestanding derivative instruments	2,225		—		2,225		—
	Notes issued by consolidated VIEs	1,745		—		1,745		—
	Total	$	4,777	$	—	$	4,947	$	(170)
	(1) Excludes $3,237 million of limited partnership investments measured at NAV.
	(2) Includes the embedded derivative of $(484) million related to GMWB reserves included in reserves for future policy benefits and claims payable, liability of $10 million related to RILA and $967 million liability of fixed index annuities, both included in other contract holder funds on the Condensed Consolidated Balance Sheets.
	(3) Includes the Athene embedded derivative asset of $3,332 million and funds withheld payable under reinsurance treaties at fair value under the fair value option.

43

Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 6. Fair Value Measurements

		December 31, 2021
		Total		Level 1		Level 2		Level 3
Assets
	Debt securities
	U.S. government securities	$	4,321	$	4,321	$	—	$	—
	Other government securities	1,619		—		1,619		—
	Public utilities	6,715		—		6,715		—
	Corporate securities	31,146		—		31,137		9
	Residential mortgage-backed	569		—		569		—
	Commercial mortgage-backed	2,038		—		2,038		—
	Other asset-backed securities	6,967		—		6,967		—
	Equity securities	279		111		56		112
	Limited partnerships (1)	18		—		17		1
	Policy loans	3,467		—		—		3,467
	Freestanding derivative instruments	1,417		—		1,417		—
	Cash and cash equivalents	2,623		2,623		—		—
	GMIB reinsurance recoverable	262		—		—		262
	Separate account assets	248,949		—		248,949		—
	Total	$	310,390	$	7,055	$	299,484	$	3,851
Liabilities
	Embedded derivative liabilities (2)	$	4,071	$	—	$	1,445	$	2,626
	Funds withheld payable under reinsurance treaties (3)	3,759		—		—		3,759
	Freestanding derivative instruments	41		—		41		—
	Notes issued by consolidated VIEs	1,404		—		1,404		—
	Total	$	9,275	$	—	$	2,890	$	6,385
	(1) Excludes $2,813 million of limited partnership investments measured at NAV.
	(2) Includes the embedded derivative liabilities of $2,626 million related to GMWB reserves included in reserves for future policy benefits and claims payable, $6 million of RILA and $1,439 million of fixed index annuities, both included in other contract holder funds on the Condensed Consolidated Balance Sheets.
	(3) Includes the Athene embedded derivative liability of $120 million and funds withheld payable under reinsurance treaties at fair value under the fair value option.

44

Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 6. Fair Value Measurements

Assets and Liabilities Measured at Fair Value Using Significant Unobservable Inputs (Level 3)

Level 3 Assets and Liabilities by Price Source

The table below presents the balances of Level 3 assets and liabilities measured at fair value with their corresponding pricing sources (in millions):

	September 30, 2022
Assets	Total		Internal		External
Debt securities:
Corporate	$	77	$	—	$	77
Equity securities	107		—		107
Mortgage loans	508		—		508
Limited partnerships	1		1		—
Policy loans	3,487		3,487		—
GMIB reinsurance recoverable	207		207		—
Total	$	4,387	$	3,695	$	692
Liabilities
Embedded derivative liabilities (1)	$	(484)	$	(484)	$	—
Funds withheld payable under reinsurance treaties (2)	314		314		—
Total	$	(170)	$	(170)	$	—
(1) Includes the embedded derivative related to GMWB reserves.
(2) Includes the Athene embedded derivative asset of $3,332 million and funds withheld payable under reinsurance treaties at fair value under the fair value option.
	December 31, 2021
Assets	Total		Internal		External
Debt securities:
Corporate	$	9	$	—	$	9
Equity securities	112		1		111
Limited partnerships	1		1		—
Policy loans	3,467		3,467		—
GMIB reinsurance recoverable	262		262		—
Total	$	3,851	$	3,731	$	120
Liabilities
Embedded derivative liabilities (1)	$	2,626	$	2,626	$	—
Funds withheld payable under reinsurance treaties (2)	3,759		3,759		—
Total	$	6,385	$	6,385	$	—
(1) Includes the embedded derivative related to GMWB reserves.
(2) Includes the Athene embedded derivative liability of $120 million and funds withheld payable under reinsurance treaties at fair value under the fair value option.

External pricing sources for securities represent unadjusted prices from independent pricing services and independent indicative broker quotes where pricing inputs are not readily available.

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Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 6. Fair Value Measurements

Quantitative Information Regarding Internally-Priced Level 3 Assets and Liabilities

The table below presents quantitative information on significant internally-priced Level 3 assets and liabilities (in millions):

	As of September 30, 2022
	Fair Value		Valuation Technique(s)	Significant Unobservable Input(s)	Assumption or Input Range	Impact of Increase in Input on Fair Value
Assets
GMIB reinsurance recoverable	$	207	Discounted cash flow	Mortality(1)	0.01% - 23.42%	Decrease
				Lapse(2)	3.30% - 9.00%	Decrease
				Utilization(3)	0.00% - 20.00%	Increase
				Withdrawal(4)	3.75% - 4.50%	Increase
				Nonperformance risk(5)	0.00% - 2.57%	Decrease
				Long-term Equity Volatility(6)	18.50% - 23.98%	Increase
Liabilities
Embedded derivative liabilities	$	(484)	Discounted cash flow	Mortality(1)	0.04% - 21.45%	Decrease
				Lapse(2)	0.20% - 30.90%	Decrease
				Utilization(3)	5.00% - 100.00%	Increase
				Withdrawal(4)	58.00% - 97.00%	Increase
				Nonperformance risk(5)	0.00% - 2.57%	Decrease
				Long-term Equity Volatility(6)	18.50% - 23.98%	Increase

(1)    Mortality rates vary by attained age, tax qualification status, GMWB benefit election, and duration. The range displayed reflects ages from the minimum issue age for the benefit through age 95, which corresponds to the typical maturity age. A mortality improvement assumption is also applied.

(2)     Base lapse rates vary by contract-level factors, such as product type, surrender charge schedule and optional benefits election. Lapse rates are further adjusted based on the degree to which a guaranteed benefit is in-the-money, with lower lapse applying when benefits are more in-the-money. Lapse rates are also adjusted to reflect lower lapse expectations when GMWB benefits are utilized.

(3)     The utilization rate represents the expected percentage of contracts that will utilize the benefit through annuitization (GMIB) or commencement of withdrawals (GMWB). Utilization may vary by benefit type, attained age, duration, tax qualification status, benefit provision, and degree to which the guaranteed benefit is in-the-money.

(4)     The withdrawal rate represents the utilization rate of the contract’s free partial withdrawal provision (GMIB) or the percentage of annual withdrawal assumed relative to the maximum allowable withdrawal amount (GMWB). Withdrawal rates on contracts with a GMIB vary based on the product type and duration. Withdrawal rates on contracts with a GMWB vary based on attained age, tax qualification status, GMWB type and GMWB benefit provisions.

(5)    Nonperformance risk spread varies by projection year.

(6)    Long-term equity volatility represents the equity volatility beyond the period for which observable equity volatilities are available.

46

Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 6. Fair Value Measurements

	As of December 31, 2021
	Fair Value		Valuation Technique(s)	Significant Unobservable Input(s)	Assumption or Input Range	Impact of Increase in Input on Fair Value
Assets
GMIB reinsurance recoverable	$	262	Discounted cash flow	Mortality(1)	0.01% - 23.42%	Decrease
				Lapse(2)	3.30% - 9.00%	Decrease
				Utilization(3)	0.00% - 20.00%	Increase
				Withdrawal(4)	3.75% - 4.50%	Increase
				Nonperformance risk(5)	0.11% - 1.50%	Decrease
				Long-term Equity Volatility(6)	18.50% - 22.06%	Increase
Liabilities
Embedded derivative liabilities	$	2,626	Discounted cash flow	Mortality(1)	0.04% - 21.45%	Decrease
				Lapse(2)	0.20% - 30.90%	Decrease
				Utilization(3)	5.00% - 100.00%	Increase
				Withdrawal(4)	58.00% - 97.00%	Increase
				Nonperformance risk(5)	0.11% - 1.50%	Decrease
				Long-term Equity Volatility(6)	18.50% - 22.06%	Increase

(1)    Mortality rates vary by attained age, tax qualification status, GMWB benefit election, and duration. The range displayed reflects ages from the minimum issue age for the benefit through age 95, which corresponds to the typical maturity age. A mortality improvement assumption is also applied.

(2)     Base lapse rates vary by contract-level factors, such as product type, surrender charge schedule and optional benefits election. Lapse rates are further adjusted based on the degree to which a guaranteed benefit is in-the-money, with lower lapse applying when benefits are more in-the-money. Lapse rates are also adjusted to reflect lower lapse expectations when GMWB benefits are utilized.

(3)     The utilization rate represents the expected percentage of contracts that will utilize the benefit through annuitization (GMIB) or commencement of withdrawals (GMWB). Utilization may vary by benefit type, attained age, duration, tax qualification status, benefit provision, and degree to which the guaranteed benefit is in-the-money.

(4)     The withdrawal rate represents the utilization rate of the contract’s free partial withdrawal provision (GMIB) or the percentage of annual withdrawal assumed relative to the maximum allowable withdrawal amount (GMWB). Withdrawal rates on contracts with a GMIB vary based on the product type and duration. Withdrawal rates on contracts with a GMWB vary based on attained age, tax qualification status, GMWB type and GMWB benefit provisions.

(5)    Nonperformance risk spread varies by projection year.

(6)    Long-term equity volatility represents the equity volatility beyond the period for which observable equity volatilities are available.

47

Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 6. Fair Value Measurements

Sensitivity to Changes in Unobservable Inputs

The following is a general description of sensitivities of significant unobservable inputs and their impact on the fair value measurement for the assets and liabilities reflected in the tables above.

At September 30, 2022 and December 31, 2021, securities of $1 million and $2 million are fair valued using techniques incorporating unobservable inputs and are classified in Level 3 of the fair value hierarchy, respectively. For these assets, their unobservable inputs and ranges of possible inputs do not materially affect their fair valuations and have been excluded from the quantitative information in the tables above.

Policy loans that support funds withheld reinsurance agreements that are held at fair value under the fair value option on the Company’s Condensed Consolidated Balance Sheets are excluded from the tables above. These policy loans do not have a stated maturity and the balances, plus accrued investment income, are repaid either by the policyholder or with proceeds from the policy. Due to the collateralized nature of policy loans and unpredictable timing of payments, the Company believes the carrying value of policy loans, which includes accrued investment income, approximates fair value and have been classified as Level 3 within the fair value hierarchy.

Funds withheld payable under reinsurance treaties, for funds withheld payable held at fair value under the fair value option and the Athene embedded derivative, are excluded from the tables above. The fair value of funds withheld payable under reinsurance treaties, excluding the Athene embedded derivative, is determined based upon the fair value of the investments held by the Company related to the Company’s funds withheld payable under reinsurance treaties. The Athene embedded derivative utilizes a total return swap technique which incorporates the fair value of the invested assets supporting the reinsurance agreement as a component of the valuation. As a result, these valuations for the funds withheld payable under reinsurance treaties and the Athene embedded derivative require certain significant inputs which are generally not observable and, accordingly, the valuation is considered Level 3 in the fair value hierarchy.

The GMIB reinsurance recoverable fair value calculation is based on the present value of future cash flows comprised of future expected reinsurance benefit receipts, less future attributed premium payments to reinsurers, over the lives of the contracts. Estimating these cash flows requires actuarially determined assumptions related to expectations concerning policyholder behavior and long-term market volatility. The more significant policyholder behavior actuarial assumptions include benefit utilization, fund allocation, lapse, and mortality.

Embedded derivative liabilities classified in Level 3 represent the fair value of guaranteed minimum withdrawal benefits and guaranteed minimum accumulation benefits liabilities. These fair value calculations are based on the present value of future cash flows comprised of future expected benefit payments, less future attributed rider fees, over the lives of the contracts. Estimating these cash flows requires actuarially determined assumptions related to expectations concerning policyholder behavior and long-term market volatility. The more significant policyholder behavior actuarial assumptions include benefit utilization, fund allocation, lapse, and mortality.

48

Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 6. Fair Value Measurements

The tables below provide roll forwards for the three and nine months ended September 30, 2022 and 2021 of the financial instruments for which significant unobservable inputs (Level 3) are used in the fair value measurement. Gains and losses in the tables below include changes in fair value due partly to observable and unobservable factors. The Company utilizes derivative instruments to manage the risk associated with certain assets and liabilities. However, the derivative instruments hedging the related risks may not be classified within the same fair value hierarchy level as the associated assets and liabilities. Therefore, the impact of the derivative instruments reported in Level 3 may vary significantly from the total income effect of the hedged instruments.

				Total Realized/Unrealized Gains (Losses) Included in
								Purchases,
		Fair Value						Sales,		Transfers		Fair Value
		as of				Other		Issuances		in and/or		as of
		July 1,		Net		Comprehensive		and		(out of)		September 30,
Three Months Ended September 30, 2022		2022		Income		Income		Settlements		Level 3		2022
Assets
	Debt securities
	Corporate securities	$	47	$	(5)	$	(1)	$	10	$	26	$	77
	Equity securities	124		(6)		—		(11)		—		107
	Mortgage loans	357		(7)		—		158		—		508
	Limited partnerships	1		—		—		—		—		1
	GMIB reinsurance recoverable	232		(25)		—		—		—		207
	Policy loans	3,485		(27)		—		29		—		3,487
Liabilities
	Embedded derivative liabilities	$	(601)	$	1,085	$	—	$	—	$	—	$	484
	Funds withheld payable under reinsurance treaties	(1,141)		857		—		(30)		—		(314)

				Total Realized/Unrealized Gains (Losses) Included in
								Purchases,
		Fair Value						Sales,		Transfers		Fair Value
		as of				Other		Issuances		in and/or		as of
		July 1,		Net		Comprehensive		and		(out of)		September 30,
Three Months Ended September 30, 2021		2021		Income		Income		Settlements		Level 3		2021
Assets
	Debt securities
	Corporate securities	$	31	$	—	$	—	$	3	$	(26)	$	8
	Equity securities	103		6		—		1		—		110
	Limited partnerships	1		—		—		—		—		1
	GMIB reinsurance recoverable	267		11		—		—		—		278
	Policy loans	3,538		(136)		—		86		—		3,488
Liabilities
	Embedded derivative liabilities	$	(2,236)	$	(856)	$	—	$	—	$	—	$	(3,092)
	Funds withheld payable under reinsurance treaties	(4,082)		236		—		(86)		—		(3,932)

49

Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 6. Fair Value Measurements

				Total Realized/Unrealized Gains (Losses) Included in
								Purchases,
		Fair Value						Sales,		Transfers		Fair Value
		as of				Other		Issuances		in and/or		as of
		January 1,		Net		Comprehensive		and		(out of)		September 30,
Nine Months Ended September 30, 2022		2022		Income		Income		Settlements		Level 3		2022
Assets
	Debt securities
	Corporate securities	$	9	$	—	$	(1)	$	13	$	56	$	77
	Equity securities	112		10		—		(15)		—		107
	Mortgage loans	—		(10)		—		518		—		508
	Limited partnerships	1		—		—		—		—		1
	GMIB reinsurance recoverable	262		(55)		—		—		—		207
	Policy loans	3,467		109		—		(89)		—		3,487
Liabilities
	Embedded derivative liabilities	$	(2,626)	$	3,110	$	—	$	—	$	—	$	484
	Funds withheld payable under reinsurance treaties	(3,759)		3,349		—		96		—		(314)

				Total Realized/Unrealized Gains (Losses) Included in
								Purchases,
		Fair Value						Sales,		Transfers		Fair Value
		as of				Other		Issuances		in and/or		as of
		January 1,		Net		Comprehensive		and		(out of)		September 30,
Nine Months Ended September 30, 2021		2021		Income		Income		Settlements		Level 3		2021
Assets
	Debt securities
	Corporate securities	$	29	$	2	$	—	$	8	$	(31)	$	8
	Equity securities	104		13		—		(7)		—		110
	Limited partnerships	1		—		—		—		—		1
	GMIB reinsurance recoverable	340		(62)		—		—		—		278
	Policy loans	3,455		(11)		—		44		—		3,488
Liabilities
	Embedded derivative liabilities	$	(5,592)	$	2,500	$	—	$	—	$	—	$	(3,092)
	Funds withheld payable under reinsurance treaties	(4,453)		565		2		(46)		—		(3,932)

50

Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 6. Fair Value Measurements

The components of the amounts included in purchases, sales, issuances and settlements for the three and nine months ended September 30, 2022 and 2021 shown above are as follows (in millions):

Three Months Ended September 30, 2022		Purchases		Sales		Issuances		Settlements		Total
Assets
	Debt securities
	Corporate securities	$	12	$	(2)	$	—	$	—	$	10
	Equity securities	1		(12)		—		—		(11)
	Mortgage loans	159		(1)		—		—		158
	Policy loans	—		—		74		(45)		29
	Total	$	172	$	(15)	$	74	$	(45)	$	186
Liabilities
	Funds withheld payable under reinsurance treaties	$	—	$	—	$	(79)	$	49	$	(30)
Three Months Ended September 30, 2021		Purchases		Sales		Issuances		Settlements		Total
Assets
	Debt securities
	Corporate securities	$	3	$	—	$	—	$	—	$	3
	Equity securities	1		—		—		—		1
	Policy loans	—		—		156		(70)		86
	Total	$	4	$	—	$	156	$	(70)	$	90
Liabilities
	Funds withheld payable under reinsurance treaties	$	—	$	—	$	(187)	$	101	$	(86)

Nine Months Ended September 30, 2022		Purchases		Sales		Issuances		Settlements		Total
Assets
	Debt securities
	Corporate securities	$	15	$	(2)	$	—	$	—	$	13
	Equity securities	1		(16)		—		—		(15)
	Mortgage loans	519		(1)		—		—		518
	Policy loans	—		—		105		(194)		(89)
	Total	$	535	$	(19)	$	105	$	(194)	$	427
Liabilities
	Funds withheld payable under reinsurance treaties	$	—	$	—	$	(111)	$	207	$	96
Nine Months Ended September 30, 2021		Purchases		Sales		Issuances		Settlements		Total
Assets
	Debt securities
	Corporate securities	$	9	$	(1)	$	—	$	—	$	8
	Equity securities	1		(8)		—		—		(7)
	Policy loans	—		—		192		(148)		44
	Total	$	10	$	(9)	$	192	$	(148)	$	45
Liabilities
	Funds withheld payable under reinsurance treaties	$	—	$	—	$	(398)	$	352	$	(46)

For the three and nine months ended September 30, 2022 and 2021, there were no transfers from Level 3 to NAV. For the three and nine months ended September 30, 2022, transfers from Level 3 to Level 2 of the fair value hierarchy were $4 million and $9 million, respectively, and transfers from Level 2 to Level 3 were $30 million and $65 million, respectively.

51

Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 6. Fair Value Measurements

For the three and nine months ended September 30, 2021, transfers from Level 3 to Level 2 of the fair value hierarchy were $29 million and $52 million, respectively, and transfers from Level 2 to Level 3 were $3 million and $21 million, respectively.

The portion of gains (losses) included in net income (loss) or other comprehensive income (loss) ("OCI") attributable to the change in unrealized gains and losses on Level 3 financial instruments still held was as follows (in millions):

	Three Months Ended September 30,
	2022				2021
	Included in Net Income		Included in OCI		Included in Net Income		Included in OCI
Assets
Debt securities
Corporate securities	$	(5)	$	(1)	$	—	$	—
Equity securities	(6)		—		6		—
Mortgage loans	(7)		—		—		—
GMIB reinsurance recoverable	(25)		—		11		—
Policy loans	(27)		—		(136)		—
Liabilities
Embedded derivative liabilities	$	1,085	$	—	$	(856)	$	—
Funds withheld payable under reinsurance treaties	857		—		110		—

	Nine Months Ended September 30,
	2022				2021
	Included in Net Income		Included in OCI		Included in Net Income		Included in OCI
Assets
Debt securities
Corporate securities	$	—	$	(1)	$	2	$	—
Equity securities	10		—		13		—
Mortgage loans	(10)		—		—		—
GMIB reinsurance recoverable	(55)		—		(62)		—
Policy loans	109		—		(11)		—
Liabilities
Embedded derivative liabilities	$	3,110	$	—	$	2,500	$	—
Funds withheld payable under reinsurance treaties	3,349		—		565		—

52

Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 6. Fair Value Measurements

Fair Value of Financial Instruments Carried at Other Than Fair Value

Mortgage Loans

Fair values are generally determined by discounting expected future cash flows at current market interest rates, inclusive of a credit spread, for similar quality loans. For loans whose value is dependent on the underlying property, fair value is the estimated value of the collateral. Certain characteristics considered significant in determining the spread or collateral value may be based on internally developed estimates. As a result, these investments have been classified as Level 3 within the fair value hierarchy.

Mortgage loans held under the funds withheld reinsurance agreement are valued using third-party pricing services, which may use economic inputs, geographical information, and property specific assumptions in deriving the fair value price. The Company reviews the valuations from these pricing providers to ensure they are reasonable. Due to lack of observable inputs, these investments have been classified as Level 3 within the fair value hierarchy.

Policy Loans

Policy loans are funds provided to policyholders in return for a claim on the policies values and function like demand deposits which are redeemable upon repayment, death or surrender, and there is only one market price at which the transaction could be settled – the then current carrying value. The funds provided are limited to the cash surrender value of the underlying policy. The nature of policy loans is to have a negligible default risk as the loans are fully collateralized by the value of the policy. Policy loans do not have a stated maturity and the balances and accrued interest are repaid either by the policyholder or with proceeds from the policy. Due to the collateralized nature of policy loans and unpredictable timing of payments, the Company believes the carrying value of policy loans approximates fair value. The non-reinsurance related component of policy loans has been classified as Level 3 within the fair value hierarchy.

FHLBI Capital Stock

FHLBI capital stock, which is included in other invested assets, can only be sold to FHLBI at a constant price of $100 per share. Due to the lack of valuation uncertainty, the investment has been classified as Level 1.

Other Contract Holder Funds

Fair values for immediate annuities without mortality features are derived by discounting the future estimated cash flows using current market interest rates for similar maturities. Fair values for deferred annuities, including the fixed option on variable annuities, fixed annuities, fixed index annuities and RILAs, are determined using projected future cash flows discounted at current market interest rates.

Fair values for guaranteed investment contracts are based on the present value of future cash flows discounted at current market interest rates.

Fair values for trust instruments supported by funding agreements are based on the present value of future cash flows discounted at current market interest rates.

Fair values of the FHLB funding agreements are based on the present value of future cash flows discounted at current market interest rates.

Funds Withheld Payable Under Reinsurance Treaties

The fair value of the funds withheld payable is equal to the fair value of the assets held as collateral, which primarily consists of bonds, mortgages, limited partnerships, and cash and cash equivalents. The fair value of the assets generally uses industry standard valuation techniques as described above and the funds withheld payable components are valued consistent with the assets in the fair value hierarchy.

53

Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 6. Fair Value Measurements

Debt

Fair values for the Company’s surplus notes and long-term debt are generally determined by prices obtained from independent broker dealers or discounted cash flow models. Such prices are derived from market observable inputs and are classified as Level 2.

Securities Lending Payable

The Company’s securities lending payable is set equal to the cash collateral received. Due to the short-term nature of the loans, carrying value is a reasonable estimate of fair value and is classified as Level 2.

FHLB Advances

Carrying value of the Company’s FHLB advances, which are included in other liabilities, is considered a reasonable estimate of fair value due to their short-term maturities and are classified as Level 2.

Repurchase Agreements

Carrying value of the Company’s repurchase agreements is considered a reasonable estimate of fair value due to their short-term maturities and are classified as Level 2.

Separate Account Liabilities

The values of separate account liabilities are set equal to the values of separate account assets, which are comprised of investments in mutual funds that transact regularly, but do not trade in active markets as they are not publicly available, and, are categorized as Level 2.

54

Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 6. Fair Value Measurements

The table below presents the carrying amount and fair value by fair value hierarchy level of certain financial instruments that are not reported at fair value (in millions).

	September 30, 2022
			Fair Value
	Carrying Value		Total		Level 1		Level 2		Level 3
Assets
Mortgage loans	$	11,223	$	10,585	$	—	$	—	$	10,585
Policy loans	959		959		—		—		959
FHLBI capital stock	146		146		146		—		—
Liabilities
Annuity reserves (1)	$	36,897	$	32,099	$	—	$	—	$	32,099
Reserves for guaranteed investment contracts (2)	1,162		1,124		—		—		1,124
Trust instruments supported by funding agreements (2)	4,944		4,765		—		—		4,765
FHLB funding agreements (2)	2,252		2,385		—		—		2,385
Funds withheld payable under reinsurance treaties	23,586		23,586		—		—		23,586
Debt	2,634		2,339		—		2,339		—
Securities lending payable	27		27		—		27		—
Repurchase agreements	—		—		—		—		—
Separate account liabilities (4)	185,042		185,042		—		185,042		—
	December 31, 2021
			Fair Value
	Carrying Value		Total		Level 1		Level 2		Level 3
Assets
Mortgage loans	$	11,482	$	11,910	$	—	$	—	$	11,910
Policy loans	1,008		1,008		—		—		1,008
FHLBI capital stock	125		125		125		—		—
Liabilities
Annuity reserves (1)	$	36,318	$	46,045	$	—	$	—	$	46,045
Reserves for guaranteed investment contracts (2)	894		923		—		—		923
Trust instruments supported by funding agreements (2)	5,986		6,175		—		—		6,175
FHLB funding agreements (2)	1,950		1,938		—		—		1,938
Funds withheld payable under reinsurance treaties (3)	24,533		24,533		537		19,127		4,869
Debt	2,649		2,745		—		2,745		—
Securities lending payable	17		17		—		17		—
Repurchase agreements	1,572		1,572		—		1,572		—
Separate account liabilities (4)	248,949		248,949		—		248,949		—
(1) Annuity reserves represent only the components of other contract holder funds that are considered to be financial instruments.
(2) Included as a component of other contract holder funds on the Condensed Consolidated Balance Sheets.
(3) Excludes $715 million of limited partnership investments measured at NAV at December 31, 2021, respectively.
(4) The values of separate account liabilities are set equal to the values of separate account assets.

55

Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 7. Deferred Acquisition Costs

7. Deferred Acquisition Costs

The balances of, and changes, in deferred acquisition costs were as follows (in millions):

	Nine Months Ended September 30,
	2022		2021
Balance, beginning of period	$	14,249	$	13,897
Deferrals of acquisition costs	497		592
Amortization	(2,276)		(551)
Unrealized investment (gains) losses	327		79
Balance, end of period	$	12,797	$	14,017

See Note 7 of Notes to Consolidated Financial Statements in Part II, Item 8, Financial Statements and Supplementary Data of the Company’s 2021 Annual Report, for more information regarding deferred acquisition costs.

8. Reinsurance

The Company assumes and cedes reinsurance from and to other insurance companies to limit losses from large exposures. However, if the reinsurer is unable to meet its obligations, the originating issuer of the coverage retains the liability. The Company reinsures certain of its risks to other reinsurers under a coinsurance, modified coinsurance, or yearly renewable term basis. The Company regularly monitors the financial strength ratings of its reinsurers.

The Company has also acquired certain lines of business that are wholly ceded to non-affiliates. These include both direct and assumed accident and health business, direct and assumed life insurance business, and certain institutional annuities.

Athene Reinsurance

The Company entered into a funds withheld coinsurance agreement with Athene effective June 1, 2020 to reinsure on 100% quota share basis, a block of Jackson’s in-force fixed and fixed-index annuity product liabilities in exchange for a $1.2 billion ceding commission. The coinsurance with funds withheld agreement required Jackson to establish a segregated account in which the investments supporting the ceded obligations are maintained. While the economic benefits of the investments flow to Athene, Jackson retains physical possession and legal ownership of the investments supporting the reserve. Further, the investments in the segregated account are not available to settle any policyholder obligations other than those specifically covered by the coinsurance agreement and are not available to settle obligations to general creditors of Jackson. The profit and loss with respect to obligations ceded to Athene are included in periodic net settlements pursuant to the coinsurance agreement. To further support its obligations under the coinsurance agreement, Athene procured $1.2 billion in letters of credit for Jackson’s benefit and established a trust account for Jackson’s benefit, which had a book value of approximately $254 million at September 30, 2022.

Swiss Re Reinsurance

The Company has three retrocession reinsurance agreements (“retro treaties”) with Swiss Reinsurance Company Ltd. (“SRZ”). Pursuant to these retro treaties, the Company ceded certain blocks of business to SRZ on a 100% coinsurance basis, subject to pre-existing reinsurance with other parties.

56

Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 8. Reinsurance

The following assets and liabilities were held in support of reserves associated with the Company’s funds withheld reinsurance agreements and were reported in the respective financial statement line items in the Condensed Consolidated Balance Sheets (in millions):

	September 30,		December 31,
	2022		2021
Assets
Debt securities, available-for-sale	$	13,919	$	19,094
Debt securities, at fair value under the fair value option	158		164
Equity securities	84		116
Mortgage loans	4,346		4,739
Mortgage loans, at fair value under the fair value option	508		—
Policy loans	3,500		3,483
Freestanding derivative instruments, net	143		37
Other invested assets	869		715
Cash and cash equivalents	509		438
Accrued investment income	169		162
Other assets and liabilities, net	(146)		(56)
Total assets (1)	$	24,059	$	28,892
Liabilities
Funds held under reinsurance treaties (2)	$	23,900	$	29,007
Total liabilities	$	23,900	$	29,007

(1)     Certain assets are reported at amortized cost while the fair value of those assets is reported in the embedded derivative in the funds withheld liability.

(2) Includes funds withheld embedded derivative asset (liability) of $3,332 million and $(120) million at September 30, 2022 and December 31, 2021, respectively.

The sources of income related to funds withheld under reinsurance treaties reported in net investment income in the Condensed Consolidated Income Statements were as follows (in millions):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Debt securities (1)	$	178	$	184	$	508	$	581
Equity securities	(3)		1		(28)		4
Mortgage loans (2)	59		49		160		127
Policy loans	77		76		236		238
Limited partnerships	23		16		125		17
Other investment income	—		—		1		—
Total investment income on funds withheld assets	334		326		1,002		967
Other investment expenses on funds withheld assets (3)	(21)		(26)		(65)		(83)
Total net investment income on funds withheld reinsurance treaties	$	313	$	300	$	937	$	884

    

(1)    Includes $(3) million and $(11) million for the three and nine months ended September 30, 2022, respectively, and $(1) million and $(2) million for the three and nine months ended September 30, 2021, respectively, related to the change in fair value for securities carried under the fair value option.

(2)    Includes $(7) million and $(10) million for the three and nine months ended September 30, 2022, respectively, and nil both for the three and nine months ended September 30, 2021, respectively, related to the change in fair value for mortgage loans carried under the fair value option.

(3)    Includes management fees.

57

Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 8. Reinsurance

The gains and losses on funds withheld reinsurance treaties as a component of net gains (losses) on derivatives and investments in the Condensed Consolidated Income Statements were as follows (in millions):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Available-for-sale securities
Realized gains on sale	$	1	$	81	$	41	$	339
Realized losses on sale	(8)		(1)		(39)		(14)
Credit loss expense	7		(1)		(33)		(2)
Credit loss expense on mortgage loans	6		25		17		21
Other	(43)		(20)		(102)		(32)
Net gains (losses) on non-derivative investments	(37)		84		(116)		312
Net gains (losses) on derivative instruments	76		34		160		53
Net gains (losses) on funds withheld payable under reinsurance treaties (1)	516		(233)		2,616		(350)
Total net gains (losses) on derivatives and investments	$	555	$	(115)	$	2,660	$	15
(1) Includes the Athene embedded derivative gain (loss) of $824 million and $3,452 million for the three and nine months ended September 30, 2022, respectively, and $101 million and $555 million for the three and nine months ended September 30, 2021, respectively.

While the economic benefits of the funds withheld assets flow to the respective reinsurers, Jackson retains physical possession and legal ownership of the investments supporting the reserves. Net investment income and net gains (losses) on derivatives and investments related to the funds withheld assets are included in periodic settlements under the reinsurance agreements which results in the flow of returns on the assets to the reinsurers. Net gains (losses) on the funds withheld assets are increased or decreased by changes in the embedded derivative liability related to the Athene Reinsurance Agreement and include (i) changes in the related funds withheld payable and (ii) amortization of the basis difference between book value and fair value of the investments as of the effective date of the reinsurance agreements.

Components of the Company’s reinsurance recoverable were as follows (in millions):

	September 30,		December 31,
	2022		2021
Reserves:
Life	$	5,753	$	5,829
Accident and health	534		547
Guaranteed minimum income benefits	207		262
Other annuity benefits (1)	23,506		25,625
Claims liability and other	796		863
Total	$	30,796	$	33,126

(1)     Other annuity benefits primarily attributable to fixed and fixed index annuities reinsured with Athene.

9. Reserves for Future Policy Benefits and Claims Payable and Other Contract Holder Funds

For traditional life insurance contracts, which include term and whole life, reserves for future policy benefits are determined using the net level premium method and assumptions as of the issue date or acquisition date as to mortality, interest, lapse and expenses, plus provisions for adverse deviations. These assumptions are not unlocked unless the reserve is determined to be deficient. Interest rate assumptions range from 2.5% to 6.0%. Lapse, mortality, and expense assumptions for recoverability are based primarily on Company experience. The Company’s liability for future policy benefits also includes net liabilities for guaranteed benefits related to certain nontraditional long-duration life and annuity contracts, which are further discussed in Note 10.

Group payout annuities consist of a closed block of defined benefit annuity plans. The liability for future benefits for these limited payment contracts is calculated using assumptions as of the acquisition date as to mortality and expense plus provisions for adverse deviation.

58

Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 9. Reserves for Future Policy Benefits and Claims Payable and Other Contract Holder Funds

In conjunction with a prior acquisition, the Company recorded a fair value adjustment at acquisition related to certain annuity and interest sensitive liability blocks of business to reflect the cost of the interest guarantees within the in-force liabilities, based on the difference between the guaranteed interest rate and an assumed new money guaranteed interest rate at acquisition. This adjustment was recorded in reserves for future policy benefits and claims payable. This reserve is reassessed at the end of each period, taking into account changes in the in-force block. Any resulting change in the reserve is recorded as a change in policy reserve through the Condensed Consolidated Income Statements.

The following table sets forth the Company’s reserves for future policy benefits and claims payable balances (in millions):

	September 30,		December 31,
	2022		2021
Traditional life	$	4,030	$	4,262
Guaranteed benefits (1)	3,529		5,477
Claims payable	977		1,050
Accident and health	1,171		1,204
Group payout annuities	4,660		4,895
Life contingent payouts	1,160		1,152
Other	603		627
Total	$	16,130	$	18,667

(1)     Primarily includes the embedded derivative liabilities related to the GMWB reserve.

The following table sets forth the Company’s liabilities for other contract holder funds balances (in millions):

	September 30,		December 31,
	2022		2021
Interest-sensitive life	$	11,336	$	11,553
Variable annuity fixed option	10,751		9,751
RILA (1)	1,235		110
Fixed annuity	14,035		14,960
Fixed index annuity (2)	12,279		13,333
GICs, funding agreements and FHLB advances	8,358		8,830
Other	180		189
Total	$	58,174	$	58,726

(1) Includes the embedded derivative liabilities related to RILA of $10 million and $6 million at September 30, 2022 and December 31, 2021, respectively.

(2) Includes the embedded derivative liabilities related to fixed index annuity of $967 million and $1,439 million at September 30, 2022 and December 31, 2021, respectively.

For interest-sensitive life contracts, liabilities approximate the policyholder’s account value, plus the remaining balance of the fair value adjustment related to previously acquired business, which is further discussed below. The liability for fixed index annuities and registered index linked annuities is based on three components: 1) the imputed value of the underlying guaranteed host contract, 2) the fair value of the embedded option component of the contract, and 3) the liability for guaranteed benefits related to the optional lifetime income rider. For fixed annuities, variable annuity fixed option, and other investment contracts, as included in the above table, the liability is the account value, plus the unamortized balance of the fair value adjustment related to previously acquired business. For payout annuities, as included in the above table, reserves are determined under the methodology for limited-payment contracts (for those with significant life contingencies) or using a constant yield method and assumptions as of the issue date for mortality, interest rates, lapse and expenses plus provisions for adverse deviations. At September 30, 2022, the Company had interest sensitive life business with minimum guaranteed interest rates ranging from 2.5% to 6.0% with a 4.68% average guaranteed rate and fixed interest rate annuities with minimum guaranteed rates ranging from 1.0% to 5.5% and a 1.94% average guaranteed rate.

59

Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 9. Reserves for Future Policy Benefits and Claims Payable and Other Contract Holder Funds

At both September 30, 2022 and December 31, 2021, excluding the reinsured business, approximately 94% of the Company’s annuity account values correspond to crediting rates that are at the minimum guaranteed interest rates. The following tables show the distribution of those annuity account values within the presented ranges of minimum guaranteed interest rates (in millions):

	September 30, 2022
Minimum Guaranteed Interest Rate	Account Value
	Fixed		Fixed Index		RILA		Variable		Total
1.0%	$	256	$	345	$	12	$	6,879	$	7,492
>1.0% - 2.0%	51		—		—		208		259
>2.0% - 3.0%	1,080		166		—		3,347		4,593
>3.0% - 4.0%	573		—		—		—		573
>4.0% - 5.0%	273		—		—		—		273
>5.0% - 5.5%	72		—		—		—		72
Subtotal	2,305		511		12		10,434		13,262
Ceded reinsurance	11,141		11,768		—		—		22,909
Total	$	13,446	$	12,279	$	12	$	10,434	$	36,171
	December 31, 2021
Minimum Guaranteed Interest Rate	Account Value
	Fixed		Fixed Index		RILA		Variable		Total
1.0%	$	156	$	279	$	1	$	5,988	$	6,424
>1.0% - 2.0%	57		1		—		214		272
>2.0% - 3.0%	1,113		183		—		3,254		4,550
>3.0% - 4.0%	594		—		—		—		594
>4.0% - 5.0%	276		—		—		—		276
>5.0% - 5.5%	72		—		—		—		72
Subtotal	2,268		463		1		9,456		12,188
Ceded reinsurance	12,086		12,870		—		—		24,956
Total	$	14,354	$	13,333	$	1	$	9,456	$	37,144

At both September 30, 2022 and December 31, 2021, approximately 80% of the Company’s interest sensitive life business account values correspond to crediting rates that are at the minimum guaranteed interest rates. The following table shows the distribution of the interest sensitive life business account values within the presented ranges of minimum guaranteed interest rates, excluding the business that is subject to the previously mentioned retro treaties (in millions):

	September 30,		December 31,
Minimum Guaranteed Interest Rate	2022		2021
	Account Value - Interest Sensitive Life
>2.0% - 3.0%	$	244	$	252
>3.0% - 4.0%	2,657		2,736
>4.0% - 5.0%	2,306		2,381
>5.0% - 6.0%	1,907		1,962
Subtotal	7,114		7,331
Retro treaties	4,222		4,222
Total	$	11,336	$	11,553

60

Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 9. Reserves for Future Policy Benefits and Claims Payable and Other Contract Holder Funds

The Company has established a $27 billion aggregate Global Medium-Term Note ("MTN") program. Jackson National Life Global Funding was formed as a statutory business trust, solely for the purpose of issuing Medium Term Note instruments to institutional investors, the proceeds of which are deposited with the Company and secured by the issuance of funding agreements. The carrying values at September 30, 2022 and December 31, 2021 totaled $4.9 billion and $6.0 billion, respectively.

Those Medium-Term Note instruments issued in a foreign currency have been hedged for changes in exchange rates using cross-currency swaps. The unrealized foreign currency gains and losses on those Medium-Term Note instruments are included in the carrying value of the trust instruments supported by funding agreements.

Trust instrument liabilities are adjusted to reflect the effects of foreign currency translation gains and losses using exchange rates as of the reporting date. Foreign currency translation gains and losses are included in net gains (losses) on derivatives and investments.

Jackson is a member of the FHLBI primarily for the purpose of participating in the bank’s mortgage-collateralized loan advance program with long-term funding facilities. Advances are in the form of long-term notes or funding agreements issued to FHLBI. At September 30, 2022 and December 31, 2021, the Company held $146 million and $125 million of FHLBI capital stock, respectively, supporting $2.3 billion and $2.0 billion in funding agreements and long-term borrowings at September 30, 2022 and December 31, 2021, respectively.

The Company’s institutional products business is comprised of the traditional guaranteed investment contracts, medium-term funding agreement-backed notes and funding agreements (including agreements issued in conjunction with the Company’s participation in the U.S. Federal Home Loan Bank program) described above.

10. Certain Non-traditional Long-Duration Contracts and Variable Annuity Guarantees

The Company issues variable contracts through its separate accounts for which investment income and investment gains and losses accrue directly to, and investment risk is borne by, the contract holder (“traditional variable annuities”). The Company also issues variable annuity and life contracts through separate accounts where the Company contractually guarantees to the contract holder (“variable contracts with guarantees”) either a) return of no less than total deposits made to the account adjusted for any partial withdrawals, b) total deposits made to the account adjusted for any partial withdrawals plus a minimum return, or c) the highest account value on a specified anniversary date adjusted for any withdrawals following the contract anniversary. These guarantees include benefits that are payable in the event of death (guaranteed minimum death benefits, or "GMDB"), at annuitization (GMIB), upon the depletion of funds (GMWB) or at the end of a specified period (GMAB).

The assets supporting the variable portion of both traditional variable annuities and variable contracts with guarantees are carried at fair value and reported as summary total separate account assets with an equivalent summary total reported for separate account liabilities. Liabilities for guaranteed benefits are general account obligations and are reported in reserves for future policy benefits and claims payable. Amounts assessed against the contract holders for mortality, administrative, and other services are reported in revenue as fee income. Changes in liabilities for minimum guarantees are reported within death, other policy benefits and change in policy reserves within the Condensed Consolidated Income Statements with the exception of changes in embedded derivatives, which are included in net gains (losses) on derivatives and investments. Separate account net investment income, net investment realized and unrealized gains and losses, and the related liability changes are offset within the same line item in the Condensed Consolidated Income Statements.

61

Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 10. Certain Non-traditional Long-Duration Contracts and Variable Annuity Guarantees

At September 30, 2022 and December 31, 2021, the Company provided variable annuity contracts with guarantees, for which the net amount at risk is defined as the amount of guaranteed benefit in excess of current account value, as follows (dollars in millions):

		Minimum Return	Account  Value		Net Amount at Risk		Weighted Average Attained Age	Average Period until Expected Annuitization
September 30, 2022
Return of net deposits plus a minimum return
	GMDB	0-6%	$	143,677	$	11,321	69.2 years
	GMWB - Premium only	0%	2,047		86
	GMWB	0-5%*	162		17
Highest specified anniversary account value    minus withdrawals post-anniversary
	GMDB		10,646		3,097		70.4 years
	GMWB - Highest anniversary only		2,819		723
	GMWB		831		169
Combination net deposits plus minimum return,    highest specified anniversary account value    minus withdrawals post-anniversary
	GMDB	0-6%	7,276		2,748		72.2 years
	GMIB	0-6%	1,156		827			0.5 years
	GMWB	0-8%*	134,190		48,276
							Weighted Average Attained Age	Average Period until Expected Annuitization
		Minimum Return	Account  Value		Net Amount at Risk
December 31, 2021
Return of net deposits plus a minimum return
	GMDB	0-6%	$	194,060	$	2,124	68.7 years
	GMWB - Premium only	0%	2,937		7
	GMWB	0-5%*	245		8
Highest specified anniversary account value    minus withdrawals post-anniversary
	GMDB		14,806		93		69.8 years
	GMWB - Highest anniversary only		3,919		33
	GMWB		643		44
Combination net deposits plus minimum return,    highest specified anniversary account value    minus withdrawals post-anniversary
	GMDB	0-6%	9,896		522		71.9 years
	GMIB	0-6%	1,662		463			0.5 years
	GMWB	0-8%*	181,457		4,295

* Ranges shown based on simple interest. The upper limits of 5% or 8% simple interest are approximately equal to 4.1% and 6.0%, respectively, on a compound interest basis over a typical 10-year bonus period. The combination GMWB category also includes benefits with a defined increase in the withdrawal percentage under pre-defined non-market conditions.

62

Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 10. Certain Non-traditional Long-Duration Contracts and Variable Annuity Guarantees

Amounts shown as GMWB above include a ‘not-for-life’ component up to the point at which the guaranteed withdrawal benefit is exhausted, after which benefits paid are considered ‘for-life’ benefits. The liability related to this ‘not-for-life’ portion is valued as an embedded derivative, while the ‘for-life’ benefits are valued as an insurance liability (see below). For this table, the net amount at risk of the ‘not-for-life’ component is the undiscounted excess of the guaranteed withdrawal benefit over the account value, and that of the ‘for-life’ component is the estimated value of additional life contingent benefits paid after the guaranteed withdrawal benefit is exhausted.

Account balances of contracts with guarantees were invested in variable separate accounts as follows (in millions):

	September 30,		December 31,
	2022		2021
Fund type:
Equity	$	110,764	$	154,368
Bond	15,818		20,207
Balanced	33,221		43,185
Money market	2,358		1,564
Total	$	162,161	$	219,324

GMDB liabilities reflected in the general account were as follows (in millions):

	Nine Months Ended September 30,
	2022		2021
Balance as of beginning of year	$	1,370	$	1,418
Incurred guaranteed benefits	1,147		173
Paid guaranteed benefits	(146)		(78)
Balance as of end of period	$	2,371	$	1,513

The GMDB liability is determined by estimating the expected value of death benefits in excess of the projected account balance and recognizing the excess ratably over the accumulation period based on total expected assessments. The Company regularly evaluates estimates used and adjusts the liability balance through the Condensed Consolidated Income Statements, within death, other policy benefits and change in policy reserves, if actual experience or other evidence suggests that earlier assumptions should be revised.

The following assumptions and methodology were used to determine the GMDB liability at both September 30, 2022 and December 31, 2021 (except where otherwise noted):

•Use of a series of stochastic investment performance scenarios, based on historical average market volatility.

•Mean investment performance assumption of 7.15%, after investment management fees, but before external investment advisory fees and mortality and expense charges.

•Mortality equal to 38% to 100% of the 2012 Individual Annuity Mortality basic table improved using Scale G2 through 2020.

•Lapse rates varying by contract type, duration and degree the benefit is in-the-money and ranging from 0.3% to 27.9% (before application of dynamic adjustments).

•Discount rates: 7.15% on 2020 and later issues, 7.4% on 2013 through 2019 issues, 8.4% on 2012 and prior issues.

Most GMWB reserves are considered derivatives under current accounting guidance and are recognized at fair value, as previously defined, with the change in fair value reported in net income (as net gains (losses) on derivatives and investments). The fair value of these liabilities is determined using stochastic modeling and inputs as further described in Note 6. The fair valued GMWB had a reserve asset of $484 million and reserve liability of $2,626 million at September 30, 2022 and December 31, 2021, respectively, and was reported in reserves for future policy benefits and claims payable.

63

Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 10. Certain Non-traditional Long-Duration Contracts and Variable Annuity Guarantees

The Company has also issued certain GMWB products that guarantee payments over a lifetime. Reserves for the portion of these benefits after the point where the guaranteed withdrawal balance is exhausted are calculated using assumptions and methodology similar to the GMDB liability. At September 30, 2022 and December 31, 2021, these GMWB reserves totaled $359 million and $196 million, respectively, and were reported in reserves for future policy benefits and claims payable.

GMAB benefits were offered on some variable annuity products. However, the Company no longer offers these benefits and all have expired as of June 30, 2021.

The direct GMIB liability is determined at each period end by estimating the expected value of the annuitization benefits in excess of the projected account balance at the date of annuitization and recognizing the excess ratably over the accumulation period based on total expected assessments. The assumptions used for calculating the direct GMIB liability are consistent with those used for calculating the GMDB liability. At September 30, 2022 and December 31, 2021, GMIB reserves before reinsurance totaled $153 million and $78 million, respectively.

Other Liabilities – Insurance and Annuitization Benefits

The Company has established additional reserves for life insurance business for universal life plans with secondary guarantees, interest-sensitive life plans that exhibit “profits followed by loss” patterns and account balance adjustments to tabular guaranteed cash values on one interest-sensitive life plan.

Liabilities for these benefits, as established according to the methodologies described below, are as follows:

	September 30, 2022					December 31, 2021
Benefit Type	Liability (in millions)		Net Amount at Risk (in millions)		Weighted Average Attained Age	Liability (in millions)		Net Amount at Risk (in millions)		Weighted Average Attained Age
Insurance benefits *	$	954	$	17,676	64.6 years	$	943	$	18,506	64.0 years
Account balance adjustments	145		N/A		N/A	141		N/A		N/A

*    Amounts for the universal life benefits are for the total of the plans containing any policies having projected non-zero excess benefits, and thus may include some policies with zero projected excess benefits.

The following assumptions and methodology were used to determine the universal life insurance benefit liability for the periods referenced in the table above:

•Use of a series of deterministic premium persistency scenarios.

•Other experience assumptions similar to those used in amortization of deferred acquisition costs.

•Discount rates equal to credited interest rates, approximately 3.0% to 5.3% at September 30, 2022 and 3.0% to 5.5% at December 31, 2021.

The Company also has a small, closed block of two-tier annuities, where different crediting rates are used for annuitization and surrender benefit calculations. A liability is established to cover future annuitization benefits in excess of surrender values and was immaterial to the Condensed Consolidated Financial Statements at both September 30, 2022 and December 31, 2021, respectively. The Company also offers an optional lifetime income rider with certain of its fixed index annuities. The liability established for this rider before reinsurance was $53 million and $37 million at September 30, 2022 and December 31, 2021, respectively.

64

Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 11.    Long-Term Debt

11.    Long-Term Debt

Liabilities for the Company’s debt are primarily carried at an amount equal to the principal balance net of any unamortized original issuance discount or premium. Original issuance discount or premium and any debt issue costs, if applicable, are recognized as a component of interest expense over the period the debt is expected to be outstanding.

The aggregate carrying value of long-term debt were as follows (in millions):

	September 30,		December 31,
	2022		2021
Long-Term Debt
Senior Notes due 2023	$	597	$	596
Senior Notes due 2027	397		—
Senior Notes due 2031	493		495
Senior Notes due 2032	347		—
Senior Notes due 2051	488		490
Term loan due 2023	—		751
Surplus notes	250		250
FHLBI bank loans	62		67
Total long-term debt	$	2,634	$	2,649

The following table presents the contractual maturities of the Company's long-term debt as of September 30, 2022 (in millions):

	Calendar Year
	2023		2024		2025		2026		2027 and thereafter		Total
Long-term debt	$	597	$	—	$	—	$	—	$	2,037	$	2,634

Senior Notes

On June 8, 2022, the Company issued $750 million aggregate principal amount of its senior unsecured notes, consisting of $400 million aggregate principal amount of 5.170% Senior Notes due June 8, 2027 and $350 million aggregate principal amount of 5.670% Senior Notes due June 8, 2032. The net proceeds of these notes were used, together with cash on hand, to repay the Company’s $750 million aggregate principal senior unsecured amount term loan due February 2023 (the “2023 DDTL Facility”).

On November 23, 2021, the Company issued $1.6 billion aggregate principal amount of its senior unsecured notes consisting of $600 million aggregate principal amount of 1.125% Senior Notes due November 22, 2023, $500 million aggregate principal amount of 3.125% Senior Notes due November 23, 2031 and $500 million aggregate principal amount of 4.000% Senior Notes due November 23, 2051. The proceeds of these notes were used, together with cash on hand, to repay the Company’s $1.6 billion aggregate principal amount senior unsecured term loan due May 2022 (the “2022 DDTL Facility”), as described below.

65

Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 11.    Long-Term Debt

Term Loans

On February 22, 2021, the Company entered into loan facilities including a $1.0 billion revolving credit facility (the “Revolving Facility”), a $1.7 billion 2022 DDTL Facility and a $1.0 billion 2023 DDTL Facility (the “Credit Facilities”) with a syndicate of banks. The Revolving Facility provides a liquidity backstop. On September 10, 2021, the Company borrowed an aggregate principal amount of $2.4 billion under the term loan facilities as follows: $1.6 billion under the 2022 DDTL Facility and $750 million under the 2023 DDTL Facility. The proceeds of those borrowings were used for general corporate purposes, including liquidity at the holding company and capitalization of the insurance subsidiaries. Under the terms of the credit agreement for the DDTL Facilities, subject to certain exceptions, 100% of the net cash proceeds from any debt issuance, preferred equity issuance or hybrid instrument issuance by the Company or its subsidiaries was required to be applied (i) first to prepay the 2022 DDTL Facility and (ii) thereafter, to prepay the 2023 DDTL Facility. As noted above, both term loans have been retired through the application of the proceeds from senior unsecured notes and cash on hand.

12. Federal Home Loan Bank Advances

The Company, through its subsidiary, Jackson, entered into an advance program with the FHLBI in which interest rates were either fixed or variable based on the FHLBI cost of funds or market rates. Advances of nil were outstanding at both September 30, 2022 and December 31, 2021 and were recorded in other liabilities.

13.     Income Taxes

On August 16, 2022, President Biden signed the Inflation Reduction Act of 2022 (“IRA”) into law. The IRA includes a new Federal alternative minimum tax (“AMT”), effective in 2023, that is based on 15% of an applicable corporation’s adjusted financial statement income (“AFSI”). A corporation will be subject to the AMT if its average pre-tax AFSI over three prior years (starting with 2020-2022) is greater than $1 billion (an “applicable corporation”). Upon becoming an applicable corporation, an entity will remain so for all future years, except under limited circumstances. The corporation’s AMT liability is payable to the extent the AMT liability exceeds regular corporate income tax. However, any AMT paid would be indefinitely available as a credit carryover that could reduce future regular corporate income tax in excess of AMT. We believe that we will be an applicable corporation starting in 2023. That belief is based on interpretations and assumptions we have made regarding the AMT provisions of the IRA, which may change once regulatory guidance is issued. As of September 30, 2022, we have not recorded any provision for the AMT. The U.S. Department of the Treasury is expected to issue regulatory guidance throughout 2023.

The IRA also creates a 1% excise tax on stock buybacks of publicly-traded U.S. corporations. Starting in 2023, such excise tax generally applies if a company repurchases in excess of $1 million worth of its stock in any given calendar year. The impact of this provision will be dependent on the extent of share repurchases made in future periods. Any excise tax incurred on corporate stock repurchases will generally be recognized as part of the cost basis of the treasury stock acquired and not reported as income tax expense.

The Company uses the estimated annual effective tax rate (“ETR”) method in computing the interim tax provision. Certain items, including those deemed unusual, infrequent, or that cannot be reliably estimated, are treated as discrete items and excluded from the estimated annual ETR. In these cases, the actual tax expense or benefit is reported in the same period as the related item. Certain tax effects are also not reflected in the estimated annual ETR, primarily certain changes in the realizability of deferred tax assets and uncertain tax positions and are recorded in the period in which the change occurs. The estimated annual ETR is revised, as necessary, at the end of successive interim reporting periods.

66

Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 13.     Income Taxes

The Company’s effective income tax rate was 27.4% and 20.0% for the three and nine months ended September 30, 2022, compared with (8.6)% and 16.5% for the same periods in 2021. The ETR differs from the statutory rate of 21% primarily due to the dividends received deduction and utilization of foreign tax credits. The change in the ETR for the three and nine months ended September 30, 2022 was due to the relationship of taxable income to consolidated pre-tax income and the impact of tax adjustments related to prior year returns recorded in the current quarter compared to the impact from tax adjustments related to prior year returns recorded in the third quarter of 2021. The ETR differs for the nine months ended September 30, 2022 from the full year-ended December 31, 2021 ETR of 15.9% due to the relationship of taxable income to consolidated pre-tax income, including the tax expense from tax adjustments related to prior year returns recorded in the current quarter and the net interest related to income taxes recorded in 2021.

The Company is required to evaluate the recoverability of its deferred tax assets and establish a valuation allowance, if necessary, to reduce its deferred tax asset to an amount that is more likely than not to be realizable. Considerable judgment and the use of estimates are required when determining whether a valuation allowance is necessary and, if so, the amount of such valuation allowance. When evaluating the need for a valuation allowance, the Company considers many factors, including: the nature and character of the deferred tax assets and liabilities; taxable income in prior carryback years; future reversals of temporary differences; the length of time carryovers can be utilized; and any tax planning strategies the Company would employ to avoid a tax benefit from expiring unused.

For the nine months ended September 30, 2022, recent changes in market conditions, including rising interest rates, impacted the unrealized tax gains and losses in the available for sale securities portfolio resulting in deferred tax assets related to net unrealized tax capital losses. The deferred tax asset relates to the unrealized losses for which the carryforward period has not yet begun, and as such, when assessing its recoverability, we consider our ability and intent to hold the underlying securities to recovery. As of September 30, 2022, based on all available evidence, we concluded that a valuation allowance should be established on a portion of the deferred tax asset related to unrealized losses that are not more-likely-than-not to be realized. For the three months ending September 30, 2022, the Company recorded an increase of $179 million to the valuation allowance associated with the unrealized tax losses in the companies’ available for sale securities portfolio. For the nine months ended September 30, 2022, the company has recorded a total valuation allowance for $499 million associated with the unrealized tax losses in the companies' available for sale securities portfolio. All of the valuation allowance establishment was allocated to other comprehensive income.

14. Commitments and Contingencies

The Company and its subsidiaries are involved in litigation arising in the ordinary course of business. It is the opinion of management that the ultimate disposition of such litigation will not have a material adverse effect on the Company's financial condition. Jackson has been named in civil litigation proceedings, which appear to be substantially similar to other class action litigation brought against many life insurers including allegations of misconduct in the sale of insurance products. The Company accrues for legal contingencies once the contingency is deemed to be probable and reasonably estimable.

At September 30, 2022, the Company had unfunded commitments related to its investments in limited partnerships and limited liability companies totaling $1,577 million. At September 30, 2022, unfunded commitments related to fixed-rate mortgage loans and other debt securities totaled $1,401 million.

15. Other Related Party Transactions

The Company's investment management operation, PPM, provides investment services to certain Prudential affiliated entities. The Company recognized $7 million and $9 million of revenue during the three months ended September 30, 2022, and 2021, and $25 million and $28 million of revenue during the nine months ended September 30, 2022 and 2021, associated with these investment services. This revenue was included in fee income in the accompanying Condensed Consolidated Income Statements.

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Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 15. Other Related Party Transactions

The investments in the segregated account related to the coinsurance agreement with Athene are subject to an investment management agreement between Jackson and Apollo Insurance Solutions Group LP (“Apollo”), which merged with Athene in 2022. Apollo management fees, which are calculated and paid monthly in arrears, are paid directly from the funds withheld account, administered by Athene. These payments were $21 million and $26 million during the three months ended September 30, 2022, and 2021, and $64 million and $80 million during the nine months ended September 30, 2022 and 2021, associated with these services.

16. Operating Costs and Other Expenses

The following table is a summary of the Company’s operating costs and other expenses (in millions):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Asset-based commission expenses	$	242	$	286	$	767	$	834
Other commission expenses	195		263		664		793
Sub-advisor expenses	80		101		252		289
General and administrative expenses	220		241		614		769
Deferral of acquisition costs	(145)		(192)		(496)		(595)
Total operating costs and other expenses	$	592	$	699	$	1,801	$	2,090

17. Accumulated Other Comprehensive Income (Loss)

The following table represents changes in the balance of AOCI, net of income tax, related to unrealized investment gains (losses) (in millions):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Balance, beginning of period (1)	$	(3,722)	$	2,390	$	1,744	$	3,821
Change in unrealized appreciation (depreciation) of investments	(2,383)		(415)		(9,254)		(2,068)
Change in unrealized appreciation (depreciation) - other	126		15		438		86
Change in deferred tax asset	313		86		1,413		429
Other comprehensive income (loss) before reclassifications	(1,944)		(314)		(7,403)		(1,553)
Reclassifications from AOCI, net of tax	(52)		(31)		(59)		(223)
Other comprehensive income (loss)	(1,996)		(345)		(7,462)		(1,776)
Balance, end of period (1)	$	(5,718)	$	2,045	$	(5,718)	$	2,045

(1)Includes $(2,316) million, $287 million and $481 million related to the investments held within the funds withheld account related to the Athene Reinsurance Transaction as of September 30, 2022, December 31, 2021 and September 30, 2021, respectively.

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Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 17. Accumulated Other Comprehensive Income (Loss)

The following table represents amounts reclassified out of AOCI (in millions):

AOCI Components	Amounts Reclassified from AOCI				Affected Line Item in the Condensed Consolidated Income Statement
	Three Months Ended September 30,
	2022		2021
Net unrealized investment gain (loss):
Net realized gain (loss) on investments	$	(47)	$	(45)	Net gains (losses) on derivatives and investments
Other impaired securities	(25)		—		Net gains (losses) on derivatives and investments
Net unrealized gain (loss)	(72)		(45)
Amortization of deferred acquisition costs	5		5
Reclassifications, before income taxes	(67)		(40)
Income tax expense (benefit)	(15)		(9)
Reclassifications, net of income taxes	$	(52)	$	(31)

AOCI Components	Amounts Reclassified from AOCI				Affected Line Item in the Condensed Consolidated Income Statement
	Nine Months Ended September 30,
	2022		2021
Net unrealized investment gain (loss):
Net realized gain (loss) on investments	$	(85)	$	(313)	Net gains (losses) on derivatives and investments
Other impaired securities	5		—		Net gains (losses) on derivatives and investments
Net unrealized gain (loss)	(80)		(313)
Amortization of deferred acquisition costs	5		28
Reclassifications, before income taxes	(75)		(285)
Income tax expense (benefit)	(16)		(62)
Reclassifications, net of income taxes	$	(59)	$	(223)

18. Equity

Common Stock

The Company had two classes of common stock: Class A Common Stock and Class B Common Stock. Both classes had a par value of $0.01 per share. Each share of Class A Common Stock is entitled to one vote per share. Each share of Class B Common Stock was entitled to one-tenth of one vote per share. Except for voting rights, the Company’s Class A Common Stock and Class B Common Stock had the same dividend rights, were equal in all other respects, and were otherwise treated as if they were one class of shares. On June 9, 2022, our shareholders approved the Third Amended and Restated Certificate of Incorporation, which amended and restated the Second Amended and Restated Certificate of Incorporation to eliminate the Class B Common Stock. At September 30, 2022 and December 31, 2021, the Company was authorized to issue up to 900 million shares of common stock (formerly known as the Class A Common Stock). At September 30, 2022 and December 31, 2021, the Company was authorized to issue nil and 100 million shares of Class B Common Stock, respectively.

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Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 18. Equity

Share Repurchase Program

On February 28, 2022, our Board of Directors authorized an increase of $300 million in our existing authorization to repurchase shares of our outstanding Class A Common Stock as part of the Company's share repurchase program. As of November 3, 2022, the Company had remaining authority to purchase $119 million of its common shares. The Company expects to repurchase shares from time to time in the open market or in privately negotiated transactions. The timing, form and amount of the share repurchases under the program are at the discretion of management and will depend on a variety of factors, including funds available at the parent company, other potential uses for such funds, market conditions, the Company's capital position, legal requirements and other factors. The repurchase program may be modified, extended or terminated by the Board at any time. It does not have an expiration date. There can be no assurance that we will continue share repurchases or approve any increase to, or approve any new, stock repurchase program, or as to the amount of any repurchases made pursuant to such programs.

The following table represents share repurchase activities as part of this share repurchase program:

Period	Number of Shares Repurchased	Total Payments  (in millions)		Average Price Paid Per Share
2021(October 1 - December 31)	5,778,649	$	211	$	36.51
Total 2021	5,778,649	211		36.51
2022 (January 1- March 31)	3,433,610	140		40.84
2022 (April 1- June 30)	1,870,854	66		35.15
2022 (July 1- September 30)	1,200,000	39		32.75
2022 (October 1 - November 3)	792,105	25		31.58
Total 2022	7,296,569	$	270	$	37.04

The following table represents changes in the balance of common stock outstanding:

	Common Stock Issued	Treasury Stock		Total Common Stock Outstanding
Shares at December 31, 2021	94,464,343	(5,778,649)		88,685,694
Share-based compensation programs	9,675	1,476,037	(1)	1,485,712
Shares repurchased under repurchase program	—	(6,504,464)		(6,504,464)
Shares at September 30, 2022	94,474,018	(10,807,076)		83,666,942

(1) Represents net shares issued from treasury stock pursuant to the Company’s share-based compensation programs.

On December 13, 2021, we repurchased 2,242,516 shares of our Class A Common Stock from Prudential and 1,134,767 shares of our Class A Common Stock from Athene. The price per share in the repurchase was $37.01. On December 13, 2021, Athene converted a total of 725,623 shares of its Class B common stock to Class A Common Stock on a one-for-one basis. On February 1, 2022, Athene converted the remaining 638,861 shares of its Class B Common Stock to Class A Common Stock on a one-for-one basis.

On March 12, 2022, we repurchased 750,000 shares of our Class A Common Stock from Athene. The price per share in the repurchase was $37.89.

Dividends to Shareholders

Any declaration of cash dividends will be at the discretion of JFI’s Board of Directors and will depend on our financial condition, earnings, liquidity and capital requirements, regulatory constraints, level of indebtedness, contractual restrictions with respect to paying cash dividends, restrictions imposed by Delaware law, general business conditions and any other factors that JFI’s Board of Directors deems relevant in making any such determination. Therefore, there can be no assurance that we will pay any cash dividends to holders of our common stock or as to the amount of any such cash dividend.

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Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 19. Earnings Per Share

The following table presents declaration date, record date, payment date and dividends paid on per JFI’s common shares:

Quarter Ended	Declaration Date	Record Date	Payment Date	Dividends Paid Per Share
03/31/2022	February 28, 2022	March 14, 2022	March 23, 2022	$0.55
06/30/2022	May 9, 2022	June 2, 2022	June 16, 2022	$0.55
09/30/2022	August 8, 2022	September 1, 2022	September 15, 2022	$0.55

19. Earnings Per Share

Basic earnings per share is calculated by dividing net income (loss) attributable to Jackson Financial Inc. shareholders by the weighted-average number of Class A and Class B common shares outstanding during the period. Except for voting rights, the Company’s Class A Common Stock and Class B Common Stock had the same dividend rights, were equal in all respects, and were otherwise treated as if they were one class of shares, including the treatment for the earnings per share calculations. Diluted earnings per share is calculated by dividing the net income (loss) attributable to Jackson Financial Inc. shareholders, by the weighted-average number of shares of Class A Common Stock and Class B Common Stock outstanding for the period, plus shares representing the dilutive effect of share-based awards. For the three and nine months ended September 30, 2021, the Company did not have any outstanding share-based awards involving the issuance of the Company’s equity and, therefore, no impact to the diluted earnings per share calculation. The Company grants share-based awards subject to vesting provisions as provided in the Company's 2021 Omnibus Incentive Plan, which have a dilutive effect. See Note 16 for further description of share-based awards in the Company's 2021 Annual Report.

The following table sets forth the calculation of earnings per common share:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
	(in millions, except share and per share data)
Net income (loss) attributable to Jackson Financial Inc.	$	1,479	$	206	$	6,407	$	2,598
Weighted average shares of common stock outstanding - basic	85,098,192		94,464,343		86,126,710		94,464,343
Dilutive common shares	2,797,727		—		3,198,774		—
Weighted average shares of common stock outstanding - diluted	87,895,919		94,464,343		89,325,484		94,464,343
Earnings per share—common stock
Basic	$	17.38	$	2.18	$	74.39	$	27.50
Diluted	$	16.83	$	2.18	$	71.73	$	27.50

20.    Revision and Reclassifications of Prior Period Financial Statements

The Company identified errors related to the classification of certain balances and amounts in line items of consolidated balance sheets, income statements, and statements of cash flows of its previously issued consolidated financial statements. These errors consist of balances and amounts related to deferred sales inducement assets, liabilities for certain life-contingent annuities, sub-advisor fee expenses, and other operating expenses and do not impact previously reported net income, total equity, or net cash flows.

Management evaluated these errors and the impact to previously issued financial statements based upon SEC Staff Accounting Bulletin No. 99, Materiality, which has since been codified in Accounting Standards Codification (“ASC”) 250, Accounting Changes and Error Corrections. Based on this evaluation, management has concluded that the adjustments and impact of these errors are not material to any previously issued quarterly or annual financial statements. However, to improve the consistency and comparability of the financial statements, management has revised previously reported financial statement line items and related disclosures in this quarterly report.

In addition, certain other immaterial amounts in prior period financial statements have been reclassified to conform to the current period presentation.

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Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 20.    Revision and Reclassifications of Prior Period Financial Statements

The following tables present condensed consolidated balance sheet and statement of income line items affected by the revisions and reclassifications of previously reported financial statements, detailing amounts previously reported, the impact upon those line items due to revisions and reclassifications and amounts as currently revised within the financial statements. For the nine months ended September 30, 2021 the reclassification also impacted the condensed consolidated statement of cash flows in the amount of $42 million, which increased financing cash flows offset by a decrease in operating cash flows. In addition, there were revisions reflected in our disclosures throughout this Form 10-Q.

Condensed Consolidated Balance Sheets (in millions)	As Previously Reported		Impact of Revisions and Reclassifications		As Revised
	12/31/21		12/31/21		12/31/21
Assets
Other assets	$	853	$	75	$	928
Total assets	375,484		75		375,559
Liabilities
Reserves for future policy benefits and claims payable	17,629		1,038		18,667
Other contract holder funds	59,689		(963)		58,726
Notes issued by consolidated variable interest entities, at fair value under fair value option	—		1,404		1,404
Other liabilities	3,944		(1,404)		2,540
Total liabilities	364,410		75		364,485
Total liabilities and equity	$	375,484	$	75	$	375,559

Condensed Consolidated Income Statements  (in millions)	As Previously Reported				Impact of Revisions and Reclassifications				As Revised
	Three Months Ended		Nine Months Ended		Three Months Ended		Nine Months Ended		Three Months Ended		Nine Months Ended
	9/30/21		9/30/21		9/30/21		9/30/21		9/30/21		9/30/21
Revenues
Fee income	$	1,962	$	5,674	$	101	$	289	$	2,063	$	5,963
Premium	35		100		2		15		37		115
Net investment income	852		2,576		(15)		(8)		837		2,568
Total revenues	1,487		7,226		88		296		1,575		7,522
Benefits and Expenses
Death, other policy benefits and change in policy reserves, net of deferrals	394		887		11		46		405		933
Interest credited on other contract holder funds, net of deferrals and amortization	217		657		(8)		(27)		209		630
Operating costs and other expenses, net of deferrals	614		1,812		85		278		699		2,090
Amortization of deferred acquisition costs	4		552		—		(1)		4		551
Total benefits and expenses	1,235		3,927		88		296		1,323		4,223
Net income (loss)	$	268	$	2,784	$	—	$	—	$	268	$	2,784

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Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 21.    Subsequent Events

21.    Subsequent Events

The Company has evaluated subsequent events through the date these Condensed Consolidated Financial Statements were issued.

Dividends Declared to Shareholders

On November 7, 2022, our Board of Directors approved a fourth quarter cash dividend on JFI's common stock, $0.55 per share, payable on December 15, 2022, to shareholders of record on December 1, 2022.

73

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

FORWARD-LOOKING STATEMENTS – CAUTIONARY LANGUAGE

Certain statements made in this Quarterly Report on Form 10-Q (this "Report") are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. A forward-looking statement is a statement that is not a historical fact and includes any statement that may predict, forecast, indicate or imply future results, performance or achievements. Forward-looking statements may contain words like: “anticipate,” “believe,” “estimate,” “expect,” “project,” “shall,” “will” and other words or phrases with similar meaning in connection with a discussion of future operating or financial performance. In particular, these include statements relating to future actions, trends in our businesses, prospective services or products, future performance or financial results and the outcome of contingencies, such as legal proceedings.

Forward-looking statements are subject to risks and uncertainties. Actual results could differ materially from those expressed in or implied by such forward-looking statements due to a variety of factors, including:

•conditions in the capital and credit markets and the economy, which impact liquidity, investment performance and valuation, hedge program performance, interest rates and credit spreads;

•Jackson Financial’s dependence on the ability of its subsidiaries to transfer funds to meet Jackson Financial’s obligations and liquidity needs;

•downgrade in our financial strength or credit ratings, which impact our business and costs of financing;

•changes in laws and regulations, which impact how we conduct our business, the relative appeal of our products versus those from other financial institutions, and changes in accounting standards, which impact how we account for and present our results of operations;

•operational failures, including failure of our information technology systems, failure to protect the confidentiality of customer information or proprietary business information, and disruptions from third-party outsourcing partners;

•a failure to adequately describe and administer, or meet any of the complex product and regulatory requirements relating to, the many complex features and options contained in our annuities;

•adverse impacts on our results of operations and capitalization as a result of optional guaranteed benefits within certain of our annuities;

•models that rely on a number of estimates, assumptions, sensitivities and projections, which models inform our business decisions and strategy, and which may contain misjudgments and errors and may not be as predictive as desired;

•risks related to natural and man-made disasters and catastrophes, diseases, epidemics, pandemics (including COVID-19), malicious acts, cyberattacks, terrorist acts, civil unrest and climate change;

•inadequate reserves due to differences between our actual experience and management’s estimates and assumptions;

•changes in the levels of amortization of deferred acquisition costs (“DAC”); and

•adverse outcomes of legal or regulatory actions.

The risks and uncertainties included here are not exhaustive. Our Annual Report on Form 10-K for the year ended December 31, 2021, as filed with the SEC on March 7, 2022, (the "2021 Annual Report") and other reports filed with the U.S. Securities and Exchange Commission (“SEC”) includes additional factors that could affect our businesses and financial performance. Moreover, we operate in a rapidly changing and competitive environment. New risk factors emerge from time to time, and it is not possible for management to predict all such risk factors.     

Further, it is not possible to assess the effect of all risk factors on our businesses or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. Given these risks and uncertainties, investors should not place undue reliance on forward-looking statements as a prediction of actual results. In addition, we disclaim any obligation to update any forward-looking statements to reflect events or circumstances that occur after the date of this Report, except as otherwise required by law.

74

Item 2 | Management’s Discussion and Analysis | Available Information & Principal Definitions

Available Information

We make available free of charge, through our website, investors.jackson.com, our annual report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, our proxy statements, and any amendments to those reports or statements as soon as reasonably practicable after these materials are electronically filed with, or furnished to, the SEC. We use our website as a routine channel for distribution of important information, including news releases, analyst presentations, financial information, and corporate governance information. The content of Jackson’s website is not incorporated by reference into this Report or in any other report or document filed with the SEC, and any references to Jackson’s website are intended to be inactive textual references only. The SEC’s website, www.sec.gov, contains reports, proxy and information statements, and other information regarding issuers that file electronically with the SEC.

Principal Definitions, Abbreviations, and Acronyms Used in the Text and Notes of this Report

we, us, our and the Company	Jackson Financial Inc. and its consolidated subsidiaries, unless the context refers only to Jackson Financial Inc. as a corporate entity (which we refer to as "JFI" or "Jackson Financial")
Jackson	Jackson National Life Insurance Company, a Company subsidiary.
Brooke Life	Brooke Life Insurance Company, a Company subsidiary and the direct parent company of Jackson National Life Insurance Company.
Jackson Finance	Jackson Finance, LLC, a Company subsidiary.
PPMH	PPM Holdings, Inc., a Company subsidiary
PPM	PPM America, Inc., a subsidiary of PPMH
ACL	Allowance for credit loss
Account value or account balance	The amount of money in a customer’s account. For example, the value increases with additional premiums and investment gains, and it decreases with withdrawals, investment losses and fees.
Athene	Athene Life Re Ltd. and its affiliates and permitted transferees, including Athene Co-Invest Reinsurance Affiliate 1A Ltd.
Athene Equity Investment	The July 2020 investment of $500 million by Athene in JFI for Class A Common Stock and Class B Common Stock, representing approximately 9.9% of the total combined voting power and approximately 11.1% of the total common stock of the Company
Athene Reinsurance Transaction	The funds withheld coinsurance agreement entered into with Athene on June 18, 2020, effective June 1, 2020, to reinsure a 100% quota share of a block of our in-force fixed and fixed index annuity liabilities in exchange for approximately $1.2 billion in ceding commissions
Athene Transactions	The Athene Reinsurance Transaction and the Athene Equity Investment, together.
AUM (Assets under management)	Investment assets that are managed by one of our subsidiaries and includes: (i) the assets in our investment portfolio managed by PPM, which excludes assets held in funds withheld accounts for reinsurance transactions, (ii) third-party assets managed by PPM, including those for Prudential and its affiliates or third parties, and (iii) the separate account assets of our Retail Annuities segment that Jackson National Asset Management, LLC ("JNAM") manages and administers.
Benefit base	A notional amount (not actual cash value) used to calculate the owner’s guaranteed benefits within an annuity contract. The death benefit and living benefit within the same contract may have different benefit bases.
CMBS	Commercial mortgage-backed securities
DAC (Deferred acquisition costs)	Represent the incremental costs related directly to the successful acquisition of new and certain renewal insurance policies and annuity contracts and which have been deferred on the balance sheet as an asset.
DDTL Facility	Delayed Draw Term Loan Facility

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Item 2 | Management’s Discussion and Analysis | Available Information & Principal Definitions

Deferred tax asset or Deferred tax liability	Assets or liabilities that are recorded for the difference between book basis and tax basis of an asset or a liability.
DSI (Deferred sales inducements)	Represent amounts that are credited to a policyholder’s account balance that are higher than the expected crediting rates on similar contracts without such an inducement and that are an incentive to purchase a contract and also meet the accounting criteria to be deferred as an asset that is amortized over the life of the contract.
Fixed Annuity	An annuity that guarantees a set annual rate of return with interest at rates we determine, subject to specified minimums. Credited interest rates are guaranteed not to change for certain limited periods of time.
Fixed Index Annuity	An annuity with an ability to share in the upside from certain financial markets, such as equity indices, and provides downside protection.
Form 10	Form 10 registration statement registering the Company’s Class A Common Stock under the Securities Exchange Act of 1934, as amended, which became effective on August 6, 2021.
General account assets	The assets held in the general accounts of our insurance companies.
GIC	Guaranteed investment contract
Guarantee Fees	Fees charged on annuities for optional benefit guarantees
GMAB (Guaranteed minimum accumulation benefit)	An add-on benefit (enhanced benefits available for an additional cost) which entitles an owner to a minimum payment, typically in lump-sum, after a set period of time, typically referred to as the accumulation period. The minimum payment is based on the benefit base, which could be greater than the underlying account value.
GMDB (Guaranteed minimum death benefit)	An add-on benefit (enhanced benefits available for an additional cost) that guarantees an owner’s beneficiaries are entitled to a minimum payment based on the benefit base, which could be greater than the underlying account value, upon the death of the owner.
GMIB (Guaranteed minimum income benefit)	An add-on benefit (available for an additional cost) where an owner is entitled to annuitize the policy and receive a minimum payment stream based on the benefit base, which could be greater than the payment stream resulting from current annuitization of the underlying account value.
GMWB (Guaranteed minimum withdrawal benefit)	An add-on benefit (available for an additional cost) where an owner is entitled to withdraw a maximum amount of their benefit base each year, for which cumulative payments to the owner could be greater than the underlying account value.
GMWB for Life (Guaranteed minimum withdrawal benefit for life)	An add-on benefit (available for an additional cost) where an owner is entitled to withdraw the guaranteed annual withdrawal amount each year, for the duration of the policyholder’s life, regardless of account performance.
NAIC	National Association of Insurance Commissioners
NAV	Net asset value
Net flows	Net flows represent the net change in customer account balances during a period, including gross premiums, surrenders, withdrawals and benefits. Net flows exclude investment performance, interest credited to customer accounts and policy charges.
RBC (Risk-based capital)	Rules to determine insurance company statutory capital requirements. It is based on rules published by the NAIC.
RILA	A registered index-linked annuity that offers market index-linked investment options, subject to a cap, and offers a variety of guarantees designed to modify or limit losses.
RMBS	Residential mortgage-backed securities
Variable annuity	A type of annuity that offers tax-deferred investment into a range of asset classes and a variable return, which offers insurance features related to potential future income payments.
VIE	Variable interest entity

76

Item 2 | Management’s Discussion and Analysis | Overview & Executive Summary

Overview of Management's Discussion and Analysis of Financial Condition and Results of Operations

The following discussion and analysis of our financial condition and results of operations should be read in its entirety and in conjunction with the Condensed Consolidated Financial Statements and related notes contained in Part I, Item 1 of this Report, as well as “Management’s Discussion and Analysis of Financial Condition and Results of Operations” section in our 2021 Annual Report.

Jackson Financial Inc. (“Jackson Financial”) along with its subsidiaries (collectively, the “Company,” which also may be referred to as “we,” “our” or “us”), is a financial services company focused on helping Americans grow and protect their retirement savings and income to enable them to pursue financial freedom for life. Jackson Financial, domiciled in the United States (“U.S.”), was previously a majority-owned subsidiary of Prudential plc (“Prudential”), London, England and was the holding company for Prudential’s U.S. operations. The Company's demerger from Prudential was completed on September 13, 2021 (the "Demerger"), and the Company no longer is a majority-owned subsidiary of Prudential. See Note 1 to Condensed Consolidated Financial Statements for further discussion of the Demerger. Jackson Financial’s primary life insurance subsidiary, Jackson, is licensed to sell group and individual annuity products (including immediate, registered index-linked, deferred fixed, fixed index and variable annuities), and various protection products, primarily whole life, universal life and variable universal life and term life insurance products in all 50 states and the District of Columbia.

Executive Summary

This executive summary of Management’s Discussion and Analysis of Financial Condition and Results of Operation highlights selected information and may not contain all the information that is important to current or potential investors in our securities. You should read this Report, together with our 2021 Annual Report, in their entirety for a more detailed description of events, trends, uncertainties, risks and critical accounting estimates affecting us.

We help Americans grow and protect their retirement savings and income to enable them to pursue financial freedom for life. We believe that we are uniquely positioned in our markets because of our differentiated products, well-known brand and disciplined risk management. Our market leadership is supported by our efficient and scalable operating platform and industry-leading distribution network. We believe these core strengths will enable us to grow profitably as an aging, U.S. population transitions into retirement.

We offer a diverse suite of annuities to retail investors in the U.S. Our variable annuities have been among the best-selling products of their kind in the U.S. primarily due to the differentiated features we offer as compared to our competitors, in particular the wider range of investment options and greater freedom to invest across multiple investment options. We also offer fixed index annuities and fixed annuities. In the fourth quarter of 2021, our primary life insurance subsidiary, Jackson National Life Insurance Company (“Jackson”) and its insurance subsidiaries successfully launched Market Link ProSM and Market Link Pro AdvisorySM, its commission and advisory based suite of registered index-linked annuities ("RILA"). Also in the fourth quarter of 2021, we entered the defined contribution market as a carrier in the AllianceBernstein Lifetime Income Strategy ("AllianceBernstein").

We sell our products through a distribution network that includes independent broker-dealers, wirehouses, regional broker-dealers, banks, and independent registered investment advisors, third-party platforms and insurance agents.

Our operating platform is scalable and efficient. We administer approximately 78% of our in-force policies on our in-house policy administration platform. The remainder of our business is administered through established third-party arrangements. We believe that our operating platform provides us with a competitive advantage by allowing us to grow efficiently and provide superior customer service.

We manage our business through three segments: Retail Annuities, Institutional Products, and Closed Life and Annuity Blocks. We report certain activities and items that are not included in these segments, including the results of PPM Holdings, Inc., the holding company of PPM, which manages the majority of our general account investment portfolio, in Corporate and Other. See Note 3 to Condensed Consolidated Financial Statements for further information on our segments.

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Item 2 | Management’s Discussion and Analysis | Executive Summary

There are several significant events involving us, including:

•Demerger from Prudential: We were previously a majority-owned subsidiary of Prudential, London, England and served as the holding company for its U.S. operations. The Demerger, or separation, from Prudential was completed on September 13, 2021, and we are now a stand-alone U.S. public company. Prudential retained an equity interest in us, which, as a result of sales subsequent to the Demerger, represents 9.1% of our outstanding common stock as of September 30, 2022.

•Common Stock Reclassification: On September 9, 2021, Jackson Financial effected a 104,960.3836276-for-1 stock split of its Class A Common Stock and Class B Common Stock by way of a reclassification of its Class A Common Stock and Class B Common Stock. All share and earnings per share information presented in this Report have been retroactively adjusted to reflect the stock split.

•Athene Transactions: On June 18, 2020, Jackson announced that it had entered into a funds withheld coinsurance agreement (the “Athene Reinsurance Agreement”) with Athene Life Re Ltd. (“Athene”) effective June 1, 2020, to reinsure on 100% quota share basis, a block of Jackson’s in-force fixed and fixed-index annuity product liabilities in exchange for a $1.2 billion ceding commission (the “Athene Reinsurance Transaction”). As a result, we hold various investments whose economic performance accrues to Athene but is reported in our financial statements. In July 2020, Athene invested $500 million of capital into the Company for an equity interest. In August 2020, the Company contributed $500 million, as a capital contribution to Jackson. Athene has an equity interest in us, which as a result of sales subsequent to the Demerger, represents an 9.0% economic interest and an 9.0% voting interest of our outstanding common stock as of September 30, 2022.

•Elimination of Class B Common Stock: On June 9, 2022, our shareholders approved the Third Amended and Restated Certificate of Incorporation, which amended and restated the Second Amended and Restated Certificate of Incorporation, to eliminate the Class B Common Stock. As a result, our Class A Common Stock became simply, common stock.

•Common Stock Repurchases: Since the Demerger and through September 30, 2022, we have repurchased 12,283,113 shares of our common stock for an aggregate consideration of $456 million. After giving effect to those repurchases and issuances for our share-based compensation, we had 10,807,076 shares of treasury stock and 83,666,942 shares of common stock outstanding at September 30, 2022.

•As discussed in Note 2 of Notes to Condensed Consolidated Financial Statements in this Report, we will be adopting ASU 2018-12, “Targeted Improvements to the Accounting for Long-Duration Contracts,” (“LDTI”) for our fiscal year beginning January 1, 2023, with a transition date of January 1, 2021. Based upon the elected transition methods, the Company currently estimates the adoption of the standard will result in a decrease of between approximately $2 billion and $4 billion in the Company’s total equity at the transition date of January 1, 2021. As a result of market changes since the transition date, primarily higher interest rates, the estimated negative impact at the transition date is trending toward a positive impact, as of September 30, 2022, to the Company’s total equity. See further discussion in Note 2 for the significant changes associated with this future change in accounting principle.

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Item 2 | Management’s Discussion and Analysis | Executive Summary

•As discussed in Note 13 of Notes to Condensed Consolidated Financial Statements in this Report, on August 16, 2022, the U.S. government enacted the Inflation Reduction Act (“IRA”) which, among other changes, created a new corporate alternative minimum tax (“AMT”) based on adjusted financial statement income, rather than reported taxable income, and imposes a 1% excise tax on corporate stock repurchases. The AMT provision is effective January 1, 2023. We expect that we will be subject to the AMT beginning in 2023. We expect any AMT incurred to be treated as a taxable temporary difference, and recorded as a deferred tax asset, so it is not expected to have a direct impact on total income tax expense; although it could affect our cash tax liabilities. As of September 30, 2022, we have not recorded any provision for the AMT. The calculation of adjusted financial statement income, and therefore the AMT, is subject to the issuance of regulatory guidance by the U.S. Department of the Treasury, which is expected throughout 2023. Any excise tax incurred on corporate stock repurchases will generally be recognized as part of the cost basis of the treasury stock acquired and not reported as part of income tax expense. We continue to monitor developments and regulations associated with the IRA for any potential future impacts on our business, results of operations and financial position. See Part II. Item 1A, Risk Factors, in this Report.

Our GAAP results are affected by the potential variability associated with our amortization of deferred acquisition costs and the fact that our use of derivatives does not qualify for GAAP deferral, meaning that the derivatives are marked to market each reporting period. See “Summary of Critical Accounting Estimates” below for more information.

Also, an understanding of several key operating measures, including sales, account value, net flows, benefit base and AUM, is helpful to evaluating our results. See “Key Operating Measures” below. Finally, we are affected by various economic, industry and regulatory trends, which are described below under “Macroeconomic, Industry and Regulatory Trends.”

Non-GAAP Financial Measures

In addition to presenting our results of operations and financial condition in accordance with U.S. GAAP, we use and report, selected non-GAAP financial measures. Management believes that the use of these non-GAAP financial measures, together with relevant U.S. GAAP financial measures, provides a better understanding of our results of operations, financial condition and the underlying performance drivers of our business. These non-GAAP financial measures should be considered supplementary to our results of operations and financial condition that are presented in accordance with U.S. GAAP and should not be viewed as a substitute for the U.S. GAAP financial measures. Other companies may use similarly titled non-GAAP financial measures that are calculated differently from the way we calculate such measures. Consequently, our non-GAAP financial measures may not be comparable to similar measures used by other companies. These non-GAAP financial measures should not be viewed as substitutes for the most directly comparable financial measures calculated in accordance with U.S. GAAP.

Adjusted Operating Earnings

Adjusted Operating Earnings is an after-tax non-GAAP financial measure, which we believe should be used to evaluate our financial performance on a consolidated basis by excluding certain items that may be highly variable from period to period due to accounting treatment under U.S. GAAP or that are non-recurring in nature, as well as certain other revenues and expenses that we do not view as driving our underlying performance. Adjusted Operating Earnings should not be used as a substitute for net income as calculated in accordance with U.S. GAAP. However, we believe the adjustments to net income are useful for gaining an understanding of our overall results of operations.

Adjusted Operating Earnings equals our net income adjusted to eliminate the impact of the following items:

1.Guaranteed Benefits and Hedging Results: the fees attributed to guaranteed benefits, the associated movements in optional guaranteed benefit liabilities and related claims and benefit payments are excluded from Adjusted Operating Earnings, as we believe this approach appropriately removes the impact to both revenue and related expenses associated with the guaranteed benefit features that are offered for certain of our variable annuities and fixed index annuities and gives investors a better picture of what is driving our underlying performance. This adjustment includes the following components:

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Item 2 | Management’s Discussion and Analysis | Non-GAAP Financial Measures

•Fees Attributable to Guarantee Benefits: fees earned in conjunction with guaranteed benefit features offered for certain of our variable annuities and fixed index annuities are set at a level intended to mitigate the cost of hedging and funding the liabilities associated with such guaranteed benefit features. The full amount of the fees attributable to guaranteed benefit features have been excluded from Adjusted Operating Earnings as the related net movements in freestanding derivatives and net reserve and embedded derivative movements, as described below, have been excluded from Adjusted Operating Earnings. This adjusted presentation of our earnings is intended to directly align revenue and related expenses associated with the guaranteed benefit features;

•Net Movement in Freestanding Derivatives, except earned income (periodic settlements and changes in settlement accruals) on derivatives that are hedges of investments, but do not qualify for hedge accounting treatment: changes in the fair value of our freestanding derivatives used to manage the risk associated with our life and annuity reserves, including those arising from the guaranteed benefit features offered for certain of our variable annuities and fixed index annuities. Net movements in freestanding derivatives have been excluded from Adjusted Operating Earnings as the market value of these derivatives may vary significantly from period to period as a result of near-term market conditions and therefore are not directly comparable or reflective of the underlying performance of our business;

•Net Reserve and Embedded Derivative Movements: changes in the valuation of certain life and annuity reserves, a portion of which are accounted for as embedded derivative instruments, and which are primarily composed of variable and fixed index annuity reserves, including those arising from the guaranteed benefit features offered for certain of our variable annuities. Net reserve and embedded derivative movements have been excluded from Adjusted Operating Earnings as the carrying values of these derivatives may vary significantly from period to period as the result of near-term market conditions and policyholder behavior-related inputs and therefore are not directly comparable or reflective of the underlying performance of our business. Movements in reserves attributable to the current period claims and benefit payments in excess of a customer’s account value on these policies are also excluded from Adjusted Operating Earnings as these benefit payments are affected by near-term market conditions and policyholder behavior-related inputs and therefore may vary significantly from period to period;

•DAC and Deferred Sales Inducements ("DSI") Impact: amortization of deferred acquisition costs and DSI associated with the items excluded from Adjusted Operating Earnings;

•Assumption changes: the impact on the valuation of Net Derivative and Reserve Movements, including amortization on DAC, arising from changes in underlying actuarial assumptions on an annual basis;

2.Net Realized Investment Gains and Losses including change in fair value of funds withheld embedded derivative: Realized investment gains and losses associated with the periodic sales or disposals of securities, excluding those held within our trading portfolio, as well as impairments of securities, after adjustment for the non-credit component of the impairment charges and change in fair value of funds withheld embedded derivative related to the Athene Reinsurance Transaction;

3.Loss on Athene Reinsurance Transaction: includes contractual ceding commission, cost of reinsurance write-off and DAC and DSI write-off related to the Athene Reinsurance Transaction;

4.Net investment income on funds withheld assets: includes net investment income on funds withheld assets related to funds withheld reinsurance transactions;

5.Other items: one-time or other non-recurring items, such as costs relating to the Demerger and our separation from Prudential, the impact of discontinued operations and investments that are consolidated on our financial statements due to U.S. GAAP accounting requirements, such as our investments in CLOs, but for which the consolidation effects are not aligned with our economic interest or exposure to those entities.

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Item 2 | Management’s Discussion and Analysis | Non-GAAP Financial Measures

Operating income taxes are calculated using the prevailing corporate federal income tax rate of 21% while taking into account any items recognized differently in our financial statements and federal income tax returns, including the dividends received deduction and other tax credits. For interim reporting periods, the company uses an estimated annual effective tax rate (“ETR”) in computing its tax provision including consideration of discrete items.

The following is a reconciliation of Adjusted Operating Earnings to net income (loss) attributable to Jackson Financial Inc., the most comparable U.S. GAAP measure.

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
	(in millions)
Net income (loss) attributable to Jackson Financial Inc.	$	1,479	$	206	$	6,407	$	2,598
Income tax expense (benefit)	559		(16)		1,606		515
Pretax income (loss) attributable to Jackson Financial Inc	2,038		190		8,013		3,113
Non-operating adjustments (income) loss:
Guaranteed benefits and hedging results:
Fees attributable to guarantee benefit reserves	(771)		(728)		(2,300)		(2,101)
Net movement in freestanding derivatives	253		493		(1,118)		3,966
Net reserve and embedded derivative movements	(714)		997		(1,781)		(2,222)
DAC and DSI impact	458		(169)		1,648		284
Assumption changes	—		—		—		—
Total guaranteed benefits and hedging results	(774)		593		(3,551)		(73)
Net realized investment (gains) losses including change in fair value of funds withheld embedded derivative	(549)		79		(2,529)		(219)
Net investment income on funds withheld assets	(313)		(300)		(937)		(884)
Other items	2		9		69		28
Total non-operating adjustments	(1,634)		381		(6,948)		(1,148)
Pretax Adjusted Operating Earnings	404		571		1,065		1,965
Operating income taxes	31		84		113		273
Adjusted Operating Earnings	$	373	$	487	$	952	$	1,692

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Item 2 | Management’s Discussion and Analysis | Non-GAAP Financial Measures

Adjusted Book Value and Adjusted Operating ROE

We use Adjusted Operating Return on Equity ("ROE") to manage our business and evaluate our financial performance. Adjusted Operating ROE excludes items that vary from period to period due to accounting treatment under U.S. GAAP or that are non-recurring in nature, as such items may distort the underlying performance of our business. We calculate Adjusted Operating ROE by dividing our Adjusted Operating Earnings by average Adjusted Book Value. Adjusted Book Value excludes Accumulated Other Comprehensive Income (Loss) ("AOCI") attributable to Jackson Financial Inc. AOCI attributable to Jackson Financial Inc. does not include AOCI arising from investments held within the funds withheld account related to the Athene Reinsurance Transaction. We exclude AOCI attributable to Jackson Financial Inc. from Adjusted Book Value because our invested assets are generally invested to closely match the duration of our liabilities, which are longer duration in nature, and therefore we believe period-to-period fair market value fluctuations in AOCI to be inconsistent with this objective. We believe excluding AOCI attributable to Jackson Financial Inc. is more useful to investors in analyzing trends in our business. Changes in AOCI within the funds withheld account related to the Athene Reinsurance Transaction offset the related non-operating earnings from the Athene Reinsurance Transaction resulting in a minimal net impact on Adjusted Book Value of Jackson Financial Inc.

Adjusted Book Value and Adjusted Operating ROE should not be used as substitutes for total shareholders’ equity and ROE as calculated using annualized net income and average equity in accordance with U.S. GAAP. However, we believe the adjustments to equity and earnings are useful to gaining an understanding of our overall results of operations.

The following is a reconciliation of Adjusted Book Value to total shareholders’ equity and a comparison of Adjusted Operating ROE to ROE, the most comparable U.S. GAAP measure:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2022			2021			2022			2021
	(in millions)
Net income (loss) attributable to Jackson Financial Inc.	$	1,479		$	206		$	6,407		$	2,598
Adjusted Operating Earnings	373			487			952			1,692
Total shareholders' equity	$	8,974		$	10,258		$	8,974		$	10,258
Adjustments to total shareholders’ equity:
Exclude accumulated other comprehensive income (loss) attributable to Jackson Financial Inc. (1)	3,402			(1,564)			3,402			(1,564)
Adjusted Book Value	$	12,376		$	8,694		$	12,376		$	8,694
ROE	63.8		%	8.0		%	88.7		%	34.6		%
Adjusted Operating ROE on average equity	12.4		%	22.5		%	11.9		%	27.4		%
(1) Excludes $(2,316) million and $481 million related to the investments held within the funds withheld account related to the Athene Reinsurance Transaction as of September 30, 2022 and 2021, respectively.

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Item 2 | Management’s Discussion and Analysis | Key Operating Measures

Key Operating Measures

We use a number of operating measures, discussed below, that management believes provide useful information about our businesses and the operational factors underlying our financial performance.

Sales

Sales of annuities and institutional products include all money deposited by customers into new and existing contracts. We believe sales statistics are useful to gaining an understanding of, among other things, the attractiveness of our products, how we can best meet our customers’ needs, evolving industry product trends and the performance of our business from period to period.

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
	(in millions)
Sales
Variable annuities	$	2,886	$	4,738	$	11,094	$	14,233
RILA	562		—		1,251		—
Fixed Index Annuities	37		23		69		92
Fixed Annuities	75		8		85		27
Total Retail Annuity Sales	3,560		4,769		12,499		14,352
Total Institutional Product Sales	314		43		1,490		43
Total Sales	$	3,874	$	4,812	$	13,989	$	14,395

For the three and nine months ended September 30, 2022, total sales decreased by $938 million and $406 million compared to the three and nine months ended September 30, 2021, respectively. Lower retail sales were primarily due to decreased sales of our variable annuities with lifetime living benefits, partially offset by sales of our lifetime income solutions offering in the defined contribution market and our new RILA product, which were launched in the fourth quarter of 2021. In addition, sales of our institutional products were higher by $271 million and $1,447 million, compared to the three and nine months ended September 30, 2021, respectively. Sales of fixed index and fixed annuities increased in 2022 due to the rising interest rate environment, which enabled more favorable pricing actions.

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Item 2 | Management’s Discussion and Analysis | Key Operating Measures

Account Value

Account value generally equals the account value of our variable annuities, RILA, fixed index annuities, fixed annuities, and institutional products. It reflects the total amount of customer invested assets that have accumulated within a respective product and equals cumulative customer contributions, which includes gross deposits or premiums, plus accrued credited interest plus or minus the impact of market movements, as applicable, less withdrawals and various fees. We believe account value is a useful metric in providing an understanding of, among other things, the sources of potential fee income generation, potential benefit obligations and risk management priorities.

	September 30, 2022		December 31, 2021
	(in millions)
Account Value
GMWB For Life	$	141,588	$	188,078
GMWB	5,429		7,318
GMIB	1,303		1,808
No Living Benefits	46,819		60,719
Total Variable Annuity Account Value	195,139		257,923
RILA	1,235		110
Fixed Index Annuity (1)	358		291
Fixed Annuity (1)	1,169		1,099
Total Fixed & Fixed Index Annuity Account Value	1,527		1,390
Total Retail Annuities Account Value	$	197,901	$	259,423
Total Institutional Products Account Value	$	8,358	$	8,830
Total Closed Life and Annuity Blocks Account Value (2)	$	8,486	$	8,778
(1) Net of reinsurance to Athene.
(2) Excludes payout annuities and traditional life insurance without account value.

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Item 2 | Management’s Discussion and Analysis | Key Operating Measures

Net Flows

Net flows represent the net change in customer account balances during a period, including gross premiums, surrenders, withdrawals and benefits. Net flows exclude investment performance, interest credited to customer accounts, transfers between fixed and variable benefits for variable annuities and policy charges. We believe net flows is a useful metric in providing an understanding of, among other things, sales, ongoing premiums and deposits, the changes in account value from period to period, sources of potential fee income and policyholder behavior.

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
	(in millions)
Net Flows:
Variable Annuity	$	(666)	$	(129)	$	(964)	$	(695)
RILA	561		—		1,248		—
Fixed Index Annuity (1)	38		21		71		83
Fixed Annuity (1)	58		16		45		19
Total Retail Annuities Net Flows, Net of Reinsurance	(9)		(92)		400		(593)
Net flows ceded to Athene	$	(893)	$	(634)	$	(2,081)	$	(1,886)
Total Retail Annuities net flows, Gross of Reinsurance	$	(902)	$	(726)	$	(1,681)	$	(2,479)
Total Institutional Products Net Flows	$	(114)	$	(104)	$	(465)	$	(2,384)
Total Closed Life and Annuity Blocks Net Flows (2)	$	(62)	$	(65)	$	(221)	$	(210)
(1) Net of reinsurance to Athene.
(2) Excludes payout annuities and traditional life insurance without account value.

Net flows, net of reinsurance, improved for the three and nine months ended September 30, 2022, compared to the three and nine months ended September 30, 2021, driven by the increased sales of RILA and institutional products which has a positive effect on net flows.

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Item 2 | Management’s Discussion and Analysis | Key Operating Measures

Benefit Base

Benefit base refers to a notional amount that represents the value of a customer’s guaranteed benefit, and therefore may be a different value from the invested assets in a customer’s account value. The benefit base may be used to calculate the fees for a customer’s guaranteed benefits within an annuity contract. The guaranteed death benefit and guaranteed living benefit within the same contract may not have the same benefit base. We believe benefit base is a useful metric for our variable annuity policies in providing an understanding of, among other things, fee income generation, potential optional guarantee benefit obligations and risk management priorities. The following table shows variable annuity account value and benefit base as of September 30, 2022 and December 31, 2021:

	September 30, 2022				December 31, 2021
	Account Value		Benefit Base		Account Value		Benefit Base
	(in millions)
No Living Benefits	$	46,819	N/A		$	60,719	N/A
By Guaranteed Living Benefits:
GMWB for Life	141,588		189,194		188,078		183,626
GMWB	5,429		5,735		7,318		5,860
GMIB (1)	1,303		1,954		1,808		2,059
Total	$	195,139	$	196,883	$	257,923	$	191,545
By Guaranteed Death Benefit:
Return of AV (No GMDB)	$	23,803	N/A		$	30,337	N/A
Return of Premium	148,998		138,202		197,544		135,034
Highest Anniversary Value	11,528		14,432		15,599		14,767
Rollup	3,138		4,752		4,188		4,850
Combination HAV/Rollup	7,672		10,371		10,255		10,402
Total	$	195,139	$	167,757	$	257,923	$	165,053
(1) Substantially all our GMIB benefits are reinsured.

Assets Under Management

AUM, or assets under management, refers to investment assets that are managed by one of our subsidiaries and includes: (i) the assets in our investment portfolio managed by PPM, which excludes assets held in funds withheld accounts for reinsurance transactions, (ii) third-party assets managed by PPM, including those for Prudential and its affiliates or third parties, and (iii) the separate account assets of our Retail Annuities segment that Jackson National Asset Management ("JNAM") manages and administers. Total AUM reflects exclusions between segments to avoid double counting. We believe AUM is a useful metric for understanding of, among other things, the sources of our earnings, net investment income and performance of our invested assets, customer directed investments and risk management priorities.

	September 30,		December 31,
	2022		2021
	(in millions)
Jackson Invested Assets	$	45,349	$	47,224
Third Party Invested Assets (including CLOs)	24,719		31,980
Total PPM AUM	70,068		79,204
Total JNAM AUM	208,046		280,250
Total AUM	$	278,114	$	359,454

PPM manages the majority of our investment portfolio and provides investment management services to Prudential affiliates in Asia, former affiliates in the United Kingdom, and other third parties across markets, including public fixed income, private equity, private debt and commercial real estate.

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Item 2 | Management’s Discussion and Analysis | Macroeconomic, Industry and Regulatory Trends

Macroeconomic, Industry and Regulatory Trends

We discuss a number of trends and uncertainties below that we believe could materially affect our future business performance, including our results of operations, our investments, our cash flows, and our capital and liquidity position.

Macroeconomic and Financial Market Conditions

Our business and results of operations are affected by macroeconomic factors. The level of interest rates and shape of the yield curve, credit and equity market performance (including market paths, equity volatility and other factors), regulation, tax policy, the level of U.S. employment, inflation and the overall economic growth rate can affect both our short and long-term profitability. Monetary and fiscal policy in the United States, or similar actions in foreign nations, could result in increased volatility in financial markets, including interest rates, currencies and equity markets, and could impact our business in both the short-term and medium-term. Political events, including the imposition of stay-at-home orders and business shutdowns or other effects arising as a result of the COVID-19 pandemic, civil unrest, tariffs or other barriers to international trade, and the effects that these or other political events could have on levels of economic activity, could also impact our business through impacts on consumers’ behavior or impact on financial markets.

In the short- to medium-term, the potential for increased volatility could pressure sales and reduce demand for our products as consumers consider purchasing alternative products to meet their objectives. Our financial performance can be adversely affected by market volatility and equity market declines if fees assessed on the account value of our annuities fluctuate, hedging costs increase and revenues decline due to reduced sales and increased outflows.

Equity Market Environment

Our financial performance is impacted by the performance of equity markets. For example, our variable annuities earn fees based on the account value, which changes with equity market levels. After a very volatile 2020, U.S. equity markets performed well in 2021 with the S&P 500 generally at or near all-time highs throughout the year. Through the first nine months of 2022 equity markets declined and equity volatility increased, resulting in higher hedging costs. The financial performance of our hedging program could be impacted by large directional market movements or periods of high volatility. In particular, our hedges could be less effective in periods of large directional movements or we could experience more frequent or more costly rebalancing in periods of high volatility, which would lead to adverse performance versus our hedge targets and increased hedging costs. Further, we are also exposed to basis risk, which results from our inability to purchase or sell hedge assets whose performance is perfectly correlated to the performance of the funds into which customers allocate their assets. We make funds available to customers where we believe we can transact in sufficiently correlated hedge assets, and we anticipate some variance in the performance of our hedge assets and customer funds. This variance may result in our hedge assets outperforming or underperforming the customer assets they are intended to match. This variance may be exacerbated during periods of high volatility, leading to a mismatch in our hedge results relative to our hedge targets and GAAP results.

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Item 2 | Management’s Discussion and Analysis | Macroeconomic, Industry and Regulatory Trends

Interest Rate Environment

The interest rate environment has affected, and will continue to affect our business and financial performance in the future for the following reasons:

•During periods of sharp rises in interest rates, as we have seen recently as a result of the Federal Reserve's actions and signals about upcoming interest rate decisions, the results of our variable annuity business, statutory capital and RBC ratio may be impacted both positively and negatively. While rising rates result in hedging losses immediately due to reductions in the market value of interest rate hedges, we would expect lower hedging costs and reduced levels of hedging going forward in a higher interest rate environment. Further, we expect near-term hedging losses from rising rates may be more than offset by changes in the fair value of the related guaranteed benefit liabilities as was the case in the first nine months of 2022. Our statutory capital, or TAC, may be negatively impacted by rising rates due to minimum required reserving levels (i.e., cash surrender value floor) when reserve releases are limited and unable to offset interest rate hedging losses, while benefiting statutory required capital, or CAL. The RBC ratio will take into account the interaction of TAC and the CAL movements.

•We operated in a low interest rate environment for several years. A prolonged low interest rate environment subjects us to increased hedging costs or an increase in the amount of statutory reserves that our insurance subsidiaries are required to hold for optional guaranteed benefits, decreasing statutory surplus, which would adversely affect their ability to pay dividends. Certain inputs to the statutory models rely on prescribed interest rates, which are, in turn, determined using a historical interest rate perspective with a mean reversion path over the longer term. In addition, low interest rates could also increase the perceived value of optional guaranteed benefit features to our customers, which in turn could lead to a higher utilization of withdrawal or annuitization features of annuity policies and higher persistency of those products over time.

•Finally, some of our annuities have a guaranteed minimum interest crediting rate. These guaranteed minimum interest crediting rates may not be lowered, even if earnings on our investment portfolio decline, resulting in net investment spread compression that negatively impacts earnings. More customers are expected to hold policies with comparatively high guaranteed minimum interest crediting rates longer in a low interest rate environment, resulting in lower than previously expected lapse rates. Similarly, we expect customers would be less likely to hold policies if existing guaranteed minimum interest crediting rates are perceived to have less value as interest rates rise, resulting in higher than previously expected lapse rates.

Credit Market Environment

Our financial performance is impacted by conditions in fixed income markets. After tightening in 2021, credit spreads widened in the first nine months of 2022. As credit spreads widen, the fair value of our existing investment portfolio generally decreases, although we generally expect the widening spreads to increase the yield on new fixed income investments. Conversely, as credit spreads tighten, the fair value of our existing investment portfolio generally increases, and the yield available on new investment purchases decreases. While changing credit spreads impact the fair value of our investment portfolio, this revaluation is generally reflected in our Accumulated Other Comprehensive Income. The revaluation will impact net income for realized gains or losses from the sale of securities, the change in fair value of trading securities or securities carried at fair value under the fair value election, or potential changes in the allowance for credit loss ("ACL"). Shifts in the credit quality of the assets underlying our investment portfolio may also impact the level of regulatory required statutory capital for our insurance company subsidiaries. As such, significant credit rating downgrades or payment defaults could negatively impact our RBC ratio.

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Item 2 | Management’s Discussion and Analysis | Macroeconomic, Industry and Regulatory Trends

COVID-19

We continue to monitor developments related to the COVID-19 pandemic. The COVID-19 pandemic has caused significant economic and financial turmoil both in the United States and around the world. There has been a steady resumption of activity during 2022, however, at this time it is not possible to estimate the long-term effectiveness of any therapeutic treatments and vaccines for COVID-19, or their efficacy with respect to current or future variants or mutations of COVID-19, or the longer-term effects that the COVID-19 pandemic could have on our business. The extent to which the COVID-19 pandemic impacts our business, results of operations, financial condition and cash flows will depend on future developments that are highly uncertain and cannot be predicted, including the availability and efficacy of vaccines against COVID-19 and against variant strains of the virus. Federal and state authorities’ actions could include restrictions of movements. We are not able to predict the duration and effectiveness of governmental and regulatory actions that may be taken in the future to contain or address the COVID-19 pandemic or the impact of future laws, regulations or restrictions on our business.

Consumer Behavior

We believe that many retirees have begun to look to tax-efficient savings products as a tool for addressing their unmet need for retirement planning. We believe our products are well positioned to meet this increasing consumer demand. However, consumer behavior may be impacted by increased economic uncertainty, unemployment rates, declining equity markets, significant changes in interest rates and increased volatility of financial markets. In recent years, we have introduced new products to better address changes in consumer demand and targeted distribution channels which meet changes in consumer preferences.

Demographics

We expect demographic trends in the U.S. population, in particular the increase in the number of retirement age individuals, to generate significant demand for our products. In addition, the potential risk to government social safety net programs and shifting of responsibility for retirement planning and financial security from employers and other institutions to employees, highlights the need for individuals to plan for their long-term financial security and will create additional opportunities to generate sustained demand for our products. We believe we are well positioned to capture the increased demand generated by these demographic trends.

Regulatory Policy

We operate in a highly regulated industry. Our insurance company subsidiaries are regulated primarily at the state level, with some policies and products also subject to federal regulation. As such, regulations recently approved or currently under review at both the U.S. federal and state level could impact our business model, including statutory reserve and capital requirements. We anticipate that our ability to respond to changes in regulation and other legislative activity will be critical to our long-term financial performance. In particular, the following could materially impact our business:

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Item 2 | Management’s Discussion and Analysis | Macroeconomic, Industry and Regulatory Trends

Department of Labor Fiduciary Advice Rule

The Department of Labor (“DOL”) has issued a new regulatory action (the “Fiduciary Advice Rule”) effective February 16, 2021, that reinstates the text of the DOL’s 1975 investment advice regulation defining what constitutes fiduciary “investment advice” to Employee Retirement Income Security Act ("ERISA") Plans and Individual Retirement Accounts ("IRAs") and provides guidance interpreting such regulation. The guidance provided by the DOL broadens the circumstances under which financial institutions, including insurance companies, could be considered fiduciaries under ERISA or the Tax Code. In particular, the DOL states that a recommendation to “roll over” assets from a qualified retirement plan to an IRA, or from an IRA to another IRA, can be considered fiduciary investment advice if provided by someone with an existing relationship with the ERISA Plan or an IRA owner (or in anticipation of establishing such a relationship). This guidance reverses an earlier DOL interpretation suggesting that roll over advice did not constitute investment advice giving rise to a fiduciary relationship. Because our distribution of annuities is primarily through intermediaries, we believe that we will have limited exposure to the new Fiduciary Advice Rule. Unlike the DOL’s previous fiduciary rule issued in 2016, compliance with the Fiduciary Advice Rule will not require us or our distributors to provide the disclosures required for exemptive relief under the previous rule. However, we continue to analyze the impact of the Fiduciary Advice Rule, and, while we cannot predict the rule’s impact, it could have an adverse effect on sales of annuities through our distribution partners. The Fiduciary Advice Rule may also lead to changes to our compensation practices and product offerings and increased litigation risk, which could adversely affect our results of operations and financial condition. We may also need to take certain additional actions to comply with or assist our distributors in their compliance with the Fiduciary Advice Rule.

Legislative Reforms

Congress approved the Setting Every Community Up for Retirement Enhancement Act of 2019 (the "SECURE Act") on December 20, 2019. The SECURE Act provides individuals with greater access to retirement products. Namely, it makes it easier for 401(k) programs to offer annuities as an investment option by, among other things, creating a statutory safe harbor in ERISA for a retirement plan’s selection of an annuity provider. The SECURE Act represents the largest overhaul to retirement plans in over a decade. We view these reforms as beneficial to our business model and expect growth opportunities will arise from the new law.

Tax Laws

All our annuities offer investors the opportunity to benefit from tax deferral. If U.S. tax laws were to change, such that our annuities no longer offer tax-deferred advantages, demand for our products could materially decrease.

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Item 2 | Management’s Discussion and Analysis | Consolidated Results of Operations

Consolidated Results of Operations

The following table sets forth, for the periods presented, certain data from our Condensed Consolidated Income Statements. The information contained in the table below should be read in conjunction with our Condensed Consolidated Financial Statements and the related notes elsewhere in this Report:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
	(in millions)
Revenues
Fee income	$	1,908	$	2,063	$	5,854	$	5,963
Premiums	36		37		105		115
Net investment income	640		837		2,022		2,568
Net gains (losses) on derivatives and investments	1,419		(1,379)		6,891		(1,194)
Other income	19		17		60		70
Total revenues	4,022		1,575		14,932		7,522
Benefits and Expenses
Death, other policy benefits and change in policy reserves, net of deferrals	586		405		2,090		933
Interest credited on other contract holder funds, net of deferrals and amortization	224		209		628		630
Interest expense	29		6		73		19
Operating costs and other expenses, net of deferrals	592		699		1,801		2,090
Amortization of deferred acquisition costs	564		4		2,276		551
Total benefits and expenses	1,995		1,323		6,868		4,223
Pretax income (loss)	2,027		252		8,064		3,299
Income tax expense (benefit)	559		(16)		1,606		515
Net income (loss)	1,468		268		6,458		2,784
Less: Net income (loss) attributable to noncontrolling interests	(11)		62		51		186
Net income (loss) attributable to Jackson Financial Inc.	$	1,479	$	206	$	6,407	$	2,598
Adjusted Operating Earnings
Net income (loss) attributable to Jackson Financial Inc.	$	1,479	$	206	$	6,407	$	2,598
Income tax expense (benefit)	559		(16)		1,606		515
Pretax income (loss) attributable to Jackson Financial Inc	2,038		190		8,013		3,113
Non-operating adjustments (income) loss:
Guaranteed benefits and hedging results:
Fees attributable to guarantee benefit reserves	(771)		(728)		(2,300)		(2,101)
Net movement in freestanding derivatives	253		493		(1,118)		3,966
Net reserve and embedded derivative movements	(714)		997		(1,781)		(2,222)
DAC and DSI impact	458		(169)		1,648		284
Assumption changes	—		—		—		—
Total guaranteed benefits and hedging results	(774)		593		(3,551)		(73)
Net realized investment (gains) losses including change in fair value of funds withheld embedded derivative	(549)		79		(2,529)		(219)
Net investment income on funds withheld assets	(313)		(300)		(937)		(884)
Other items	2		9		69		28
Total non-operating adjustments	(1,634)		381		(6,948)		(1,148)
Pretax Adjusted Operating Earnings	404		571		1,065		1,965
Operating income taxes	31		84		113		273
Adjusted Operating Earnings	$	373	$	487	$	952	$	1,692

91

Item 2 | Management’s Discussion and Analysis | Consolidated Results of Operations

Three Months Ended September 30, 2022 compared to Three Months Ended September 30, 2021

Pretax Income (Loss)

Our pretax income (loss) increased by $1,775 million to a pretax income of $2,027 million for the three months ended September 30, 2022, from a pretax income of $252 million for the three months ended September 30, 2021 primarily due to:

•$2,798 million increase in total net gains (losses) on derivatives and investments as shown in the table below and driven by:

	Three Months Ended September 30,
	2022		2021		Variance
	(in millions)
Net gains (losses) excluding derivatives and funds withheld assets	$	(6)	$	37	$	(43)
Net gains (losses) on freestanding derivatives	(248)		(455)		207
Net gains (losses) on embedded derivatives (excluding funds withheld reinsurance)	1,118		(846)		1,964
Net gains (losses) on derivative instruments	870		(1,301)		2,171
Net gains (losses) on funds withheld reinsurance	555		(115)		670
Total net gains (losses) on derivatives and investments	$	1,419	$	(1,379)	$	2,798

◦Favorable movements in reserves for guaranteed benefits, primarily driven by more favorable increases in interest rates, partially offset by equity market declines compared to the prior year.

◦Higher benefit recognized on funds withheld reinsurance driven by increased interest rates compared to prior year; and

◦Lower freestanding derivative losses as a result of gains on our equity derivatives primarily driven by market decreases in 2022, compared to relatively flat market movements in the prior year, partially offset by losses within our interest rate related hedge instruments, reflecting increases in interest rates, compared to the prior year.

•$107 million decrease in operating costs and other expenses, net of deferrals, primarily due to lower incentive compensation expenses in 2022 and lower asset-based non-deferrable commissions due to lower account values during the three months ended September 30, 2022.

These increases were partially offset by:

•$560 million increase in amortization of deferred acquisition costs driven by higher net freestanding and embedded derivative gains in 2022, leading to higher current period gross profits and, therefore, higher current period amortization.

•$197 million decrease in net investment income as a result of lower income on limited partnership investments, which are recorded on a one quarter lag;

•$181 million increase in death, other policy benefits and change in policy reserves primarily due to changes in reserves on variable annuity guarantees accounted for as insurance liabilities driven by unfavorable equity movements during the three months ended September 30, 2022 compared to relatively flat movements during the three months ended September 30, 2021;

•$155 million decrease in fee income primarily due to decrease in average variable annuity account values stemming from unfavorable separate account performance in 2022; and

•$23 million higher interest expense incurred in the current year primarily related to our senior notes, which refinanced our term loan facilities.

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Item 2 | Management’s Discussion and Analysis | Consolidated Results of Operations

Income Taxes

Income tax expense increased $575 million to an expense of $559 million for the three months ended September 30, 2022, from a benefit of $16 million for the three months ended September 30, 2021. The provision for income tax in the current period led to an effective income tax rate of 27% for the three months ended September 30, 2022 compared to the 2021 effective income tax rate of (9)%. The expense during the three months ended September 30, 2022 increased primarily due to the relationship of the taxable income to the consolidated pre-tax income and the impact of tax adjustments related to prior year returns recorded in the current quarter. Our ETR differs from the statutory rate of 21% primarily due to the dividends received deduction and utilization of tax credits. See Note 13 of Notes to Consolidated Financial Statements in our 2021 Annual Report for more information.

Nine Months Ended September 30, 2022 compared to Nine Months Ended September 30, 2021

Pretax Income (Loss)

Our pretax income (loss) increased by $4,765 million to a pretax income of $8,064 million for the nine months ended September 30, 2022, from a pretax income of $3,299 million for the nine months ended September 30, 2021 primarily due to:

•$8,085 million increase in total net gains (losses) on derivatives and investments as shown in the table below and driven by:

	Nine Months Ended September 30,
	2022		2021		Variance
	(in millions)
Net gains (losses) excluding derivatives and funds withheld assets	$	(131)	$	204	$	(335)
Net gains (losses) on freestanding derivatives	1,181		(3,849)		5,030
Net gains (losses) on embedded derivatives (excluding funds withheld reinsurance)	3,181		2,436		745
Net gains (losses) on derivative instruments	4,362		(1,413)		5,775
Net gains (losses) on funds withheld reinsurance	2,660		15		2,645
Total net gains (losses) on derivatives and investments	$	6,891	$	(1,194)	$	8,085

◦Higher freestanding derivative gains on our equity derivatives primarily driven by significant market decreases in 2022, compared to market increases in the prior year. These gains were partially offset by losses within our interest rate related hedge instruments, reflecting increases in interest rates, as compared to the prior year;

◦Higher benefit recognized on funds withheld reinsurance driven by increased interest rates compared to prior year; and

◦More favorable movements in reserves for guaranteed benefits, primarily driven by more favorable increases in interest rates partially offset by unfavorable equity and equity volatility movements, compared to prior year.

Primarily offset by:

◦Losses on sales of securities recognized on gains (losses) excluding derivatives and funds withheld assets, compared to prior year gains.

•$289 million decrease in operating costs and other expenses, net of deferrals, primarily due to lower deferred compensation in 2022, lower asset-based non-deferrable commissions due to lower account values during the nine months ended September 30, 2022, and higher separation costs in 2021.

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Item 2 | Management’s Discussion and Analysis | Consolidated Results of Operations

These increases were partially offset by:

•$1,725 million increase in amortization of deferred acquisition costs driven by higher net freestanding derivative and embedded derivative gains in 2022, leading to higher current period gross profits and, therefore, higher current period amortization;

•$1,157 million increase in death, other policy benefits and change in policy reserves primarily due to changes in reserves on variable annuity guarantees accounted for as insurance liabilities driven by unfavorable equity movements in 2022 compared to favorable movements in 2021;

•$546 million decrease in net investment income as a result of lower income on limited partnership investments, which are recorded on a one quarter lag;

•$109 million decrease in fee income primarily due to decreases in variable fee income and asset management fees compared to prior year, partially offset by increases in benefit-based guarantee fee income; and

•$54 million higher interest expense incurred in the current year primarily related to our senior notes, which refinanced our term loan facilities.

Income Taxes

Income tax expense increased $1,091 million to an expense of $1,606 million for the nine months ended September 30, 2022, from an expense of $515 million for the nine months ended September 30, 2021. The provision for income tax in the current period led to an effective income tax rate of 20% for the nine months ended September 30, 2022 compared to the 2021 effective income tax rate of 17%. The expense during the nine months ended September 30, 2022 increased primarily due to the relationship of the taxable income to the consolidated pre-tax income and the impact of tax adjustments related to prior year returns recorded in the current quarter. Our ETR differs from the statutory rate of 21% primarily due to the dividends received deduction and utilization of tax credits. See Note 13 of Notes to Consolidated Financial Statements in our 2021 Annual Report for more information.

94

Item 2 | Management’s Discussion and Analysis | Segment Results of Operations

Segment Results of Operations

We manage our business through three segments: Retail Annuities, Institutional Products, and Closed Life and Annuity Blocks. We report certain activities and items that are not included in these segments, including the results of PPM Holdings, Inc., the holding company of PPM, within Corporate and Other. The following tables and discussion represent an overall view of our results of operations for each segment.

Pretax Adjusted Operating Earnings by Segment

The following table summarizes pretax adjusted operating earnings (non-GAAP) from the Company's business segment operations and also provides a reconciliation of the segment measure to net income on a consolidated GAAP basis. Also, see Note 3 to Condensed Consolidated Financial Statements for further information regarding the calculation of pretax adjusted operating earnings:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
	(in millions)
Pretax Adjusted Operating Earnings by Segment:
Retail Annuities	$	364	$	527	$	988	$	1,779
Institutional Products	20		21		62		37
Closed Life and Annuity Blocks	33		68		31		203
Corporate and Other	(13)		(45)		(16)		(54)
Pretax Adjusted Operating Earnings	404		571		1,065		1,965
Pre-tax reconciling items from adjusted operating income to net income (loss) attributable to Jackson Financial Inc.:
Guaranteed benefits and hedging results:
Fees attributable to guarantee benefit reserves	771		728		2,300		2,101
Net movement in freestanding derivatives	(253)		(493)		1,118		(3,966)
Net reserve and embedded derivative movements	714		(997)		1,781		2,222
DAC and DSI impact	(458)		169		(1,648)		(284)
Assumption changes	—		—		—		—
Total guaranteed benefits and hedging results	774		(593)		3,551		73
Net realized investment (gains) losses including change in fair value of funds withheld embedded derivative	549		(79)		2,529		219
Net investment income on funds withheld assets	313		300		937		884
Other items	(2)		(9)		(69)		(28)
Total pre-tax reconciling items	1,634		(381)		6,948		1,148
Pretax income (loss) attributable to Jackson Financial Inc.	2,038		190		8,013		3,113
Income tax expense (benefit)	559		(16)		1,606		515
Net income (loss) attributable to Jackson Financial Inc.	$	1,479	$	206	$	6,407	$	2,598

95

Item 2 | Management’s Discussion and Analysis | Segment Results of Operations

Retail Annuities

The following table sets forth, for the periods presented, certain data underlying the pretax adjusted operating earnings (non-GAAP) results for our Retail Annuities segment. The information contained in the table below should be read in conjunction with our Condensed Consolidated Financial Statements and the related notes appearing elsewhere in this Report:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
	(in millions)
Retail Annuities:
Operating Revenues
Fee income	$	1,002	$	1,194	$	3,144	$	3,433
Premiums	3		2		6		15
Net investment income	72		180		299		541
Income (loss) on operating derivatives	2		13		20		42
Other income	11		12		33		35
Total Operating Revenues	1,090		1,401		3,502		4,066
Operating Benefits and Expenses
Death, other policy benefits and change in policy    reserves, net of deferrals	5		38		54		90
Interest credited on other contract holder funds, net of    deferrals and amortization	72		56		191		168
Interest expense	8		6		19		17
Operating costs and other expenses, net of deferrals	541		614		1,648		1,780
Amortization of deferred acquisition costs	100		160		602		232
Total Operating Benefits and Expenses	726		874		2,514		2,287
Pretax Adjusted Operating Earnings	$	364	$	527	$	988	$	1,779

The following table summarizes a roll forward of activity affecting account value for our Retail Annuities segment for the periods indicated:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
	(in millions)
Retail Annuities Account Value:
Balance as of beginning of period	$	232,219	$	276,185	$	284,379	$	256,740
Premiums and deposits	3,579		4,818		12,600		14,493
Surrenders, withdrawals, and benefits	(4,481)		(5,544)		(14,281)		(16,972)
Net flows	(902)		(726)		(1,681)		(2,479)
Credited Interest/Investment performance	(9,780)		(1,559)		(59,712)		20,952
Policy Charges and other	(727)		(690)		(2,176)		(2,003)
Balance as of end of period	220,810		273,210		220,810		273,210
Ceded reinsurance	(22,909)		(25,440)		(22,909)		(25,440)
Balance as of end of period, net of ceded reinsurance	$	197,901	$	247,770	$	197,901	$	247,770

96

Item 2 | Management’s Discussion and Analysis | Segment Results of Operations

Three Months Ended September 30, 2022 compared to Three Months Ended September 30, 2021

Pretax Adjusted Operating Earnings

Pretax adjusted operating earnings decreased $163 million to $364 million for the three months ended September 30, 2022 from $527 million for the three months ended September 30, 2021 primarily due to:

•$192 million decrease in fee income primarily due to a decrease in average variable annuity account values stemming from unfavorable separate account performance in 2022; and

•$108 million decrease in net investment income primarily due to lower levels of investment income on private equity and other limited partnership investments, when compared to the same period in 2021.

These decreases were partially offset by:

•$60 million decrease in amortization of deferred acquisition costs primarily due to higher projected separate account returns during the current quarter, driven by the release of the historical returns from the mean reversion formula, and a negative impact from this same item for three months ended September 30, 2021; and

•$73 million decrease in operating costs and other expenses, net of deferrals, primarily due to lower asset-based non-deferrable commissions due to lower account values during the three months ended September 30, 2022, and lower incentive compensation expenses in 2022.

Nine Months Ended September 30, 2022 compared to Nine Months Ended September 30, 2021

Pretax Adjusted Operating Earnings

Pretax adjusted operating earnings decreased $791 million to $988 million for the nine months ended September 30, 2022 from $1,779 million for the nine months ended September 30, 2021 primarily due to:

•$370 million increase in amortization of deferred acquisition costs primarily due to lower separate account returns during 2022, which led to decreased expected future gross profits, and therefore higher current period amortization during 2022;

•$289 million decrease in fee income primarily due to a decrease in average variable annuity account values stemming from unfavorable separate account performance in 2022; and

•$242 million decrease in net investment income primarily due to lower levels of investment income on private equity and other limited partnership investments, when compared to the same period in 2021.

These decreases were partially offset by:

•$132 million decrease in operating costs and other expenses, net of deferrals, primarily due to lower asset-based non-deferrable commissions due to lower account values during 2022, and lower deferred compensation expenses in 2022.

Account Value

Retail annuities account value, gross of reinsurance, decreased $52 billion between periods primarily due to negative variable annuity separate account growth driven by unfavorable market performance in 2022, as well as negative net flows over the period, primarily from our reinsured fixed and fixed index annuity block.

97

Item 2 | Management’s Discussion and Analysis | Segment Results of Operations

Institutional Products

The following table sets forth, for the periods presented, certain data underlying the pretax adjusted operating earnings (non-GAAP) results for our Institutional Products segment. The information contained in the table below should be read in conjunction with our Condensed Consolidated Financial Statements and the related notes appearing elsewhere in this Report.

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
	(in millions)
Institutional Products:
Operating Revenues
Net investment income	$	80	$	69	$	216	$	189
Income (loss) on operating derivatives	(8)		(1)		(13)		(1)
Total Operating Revenues	72		68		203		188
Operating Benefits and Expenses
Interest credited on other contract holder funds, net of    deferrals and amortization	51		47		137		147
Interest expense	—		(2)		—		—
Operating costs and other expenses, net of deferrals	1		2		4		4
Total Operating Benefits and Expenses	52		47		141		151
Pretax Adjusted Operating Earnings	$	20	$	21	$	62	$	37

The following table summarizes a roll forward of activity affecting account value for our Institutional Products segment for the periods indicated:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
	(in millions)
Institutional Products:
Balance as of beginning of period	$	8,483	$	8,910	$	8,830	$	11,138
Premiums and deposits	314		43		1,490		43
Surrenders, withdrawals, and benefits	(428)		(147)		(1,955)		(2,427)
Net flows	(114)		(104)		(465)		(2,384)
Credited Interest	51		45		137		147
Policy Charges and other	(62)		(12)		(144)		(62)
Balance as of end of period	$	8,358	$	8,839	$	8,358	$	8,839

Three Months Ended September 30, 2022 compared to Three Months Ended September 30, 2021

Pretax Adjusted Operating Earnings

Pretax adjusted operating earnings remained relatively flat at $20 million for the three months ended September 30, 2022 from $21 million for the three months ended September 30, 2021.

98

Item 2 | Management’s Discussion and Analysis | Segment Results of Operations

Nine Months Ended September 30, 2022 compared to Nine Months Ended September 30, 2021

Pretax Adjusted Operating Earnings

Pretax adjusted operating earnings increased $25 million to $62 million for the nine months ended September 30, 2022 from $37 million for the nine months ended September 30, 2021 primarily due to increased investment income and a decrease in interest credited, partially offset by increased losses on operating derivatives, driven by interest rate and foreign exchange movements, compared to prior year.

Account Value

Institutional product account value decreased from $8,839 million at September 30, 2021 to $8,358 million at September 30, 2022. The decline in account value was driven by continued maturities of the existing contracts and funding agreements, partially offset by new issuances in 2022.

Closed Life and Annuity Blocks

The following table sets forth, for the periods presented, certain data underlying the pretax adjusted operating earnings (non-GAAP) results for our Closed Life and Annuity Blocks segment. The information contained in the table below should be read in conjunction with our Condensed Consolidated Financial Statements and the related notes appearing elsewhere in this Report.

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
	(in millions)
Closed Life and Annuity Blocks:
Operating Revenues
Fee income	$	118	$	123	$	358	$	371
Premiums	36		39		108		110
Net investment income	166		245		522		723
Income (loss) on operating derivatives	7		18		35		56
Other income	8		7		25		29
Total Operating Revenues	335		432		1,048		1,289
Operating Benefits and Expenses
Death, other policy benefits and change in policy    reserves, net of deferrals	176		216		636		629
Interest credited on other contract holder funds, net of    deferrals and amortization	101		106		300		315
Operating costs and other expenses, net of deferrals	22		38		74		131
Amortization of deferred acquisition costs	3		4		7		11
Total Operating Benefits and Expenses	302		364		1,017		1,086
Pretax Adjusted Operating Earnings	$	33	$	68	$	31	$	203

Three Months Ended September 30, 2022 compared to Three Months Ended September 30, 2021

Pretax Adjusted Operating Earnings

Pretax adjusted operating earnings decreased $35 million to $33 million for the three months ended September 30, 2022 from $68 million for the three months ended September 30, 2021 primarily due to:

•$79 million decrease in net investment income primarily due to lower levels of investment income on private equity and other limited partnership investments, when compared to the same period in 2021.

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Item 2 | Management’s Discussion and Analysis | Segment Results of Operations

This decrease was partially offset by:

•$40 million decrease in death, other policy benefits and change in policy reserves, net of deferrals, primarily due to lower death claims.

Nine Months Ended September 30, 2022 compared to Nine Months Ended September 30, 2021

Pretax Adjusted Operating Earnings

Pretax adjusted operating earnings decreased $172 million to $31 million for the nine months ended September 30, 2022 from $203 million for the nine months ended September 30, 2021 primarily due to:

•$201 million decrease in net investment income primarily due to lower levels of investment income on private equity and other limited partnership investments, when compared to the same period in 2021.

This decrease was partially offset by:

•$57 million decrease in operating costs and other expenses, net of deferrals, primarily due to deferred compensation expenses in 2022.

Corporate and Other

Corporate and Other includes the operations of PPM Holdings, Inc., the holding company of PPM, and unallocated corporate revenue and expenses, as well as certain eliminations and consolidation adjustments. The following table sets forth, for the periods presented, certain data underlying the pretax adjusted operating earnings (non-GAAP) results for Corporate and Other. The information contained in the table below should be read in conjunction with our Condensed Consolidated Financial Statements and the related notes appearing elsewhere in this Report.

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
	(in millions)
Corporate and Other:
Operating Revenues
Fee income	$	13	$	15	$	43	$	49
Net investment income	22		(23)		65		9
Income (loss) on operating derivatives	2		8		20		20
Other income	—		(2)		2		6
Total Operating Revenues	37		(2)		130		84
Operating Benefits and Expenses
Interest expense	21		2		54		2
Operating costs and other expenses, net of deferrals	28		31		74		111
Amortization of deferred acquisition costs	1		10		18		25
Total Operating Benefits and Expenses	50		43		146		138
Pretax Adjusted Operating Earnings	$	(13)	$	(45)	$	(16)	$	(54)

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Three Months Ended September 30, 2022 compared to Three Months Ended September 30, 2021

Pretax Adjusted Operating Earnings

Pretax adjusted operating earnings increased $32 million to $(13) million for the three months ended September 30, 2022 from $(45) million for the three months ended September 30, 2021 primarily due to the following:

•$45 million increase in net investment income primarily due to higher net investment income resulting from higher levels of capital, as the investment income on that excess capital remains in the Corporate and Other segment.

This increase was partially offset by:

•$19 million higher interest expense incurred in the current year primarily related to our Senior Notes, which refinanced our term loan facilities.

Nine Months Ended September 30, 2022 compared to Nine Months Ended September 30, 2021

Pretax Adjusted Operating Earnings

Pretax adjusted operating earnings increased $38 million to $(16) million for the nine months ended September 30, 2022 from $(54) million for the nine months ended September 30, 2021 primarily due to the following:

•$56 million increase in net investment income primarily due to higher net investment income resulting from an increased excess capital position, as the investment income on that excess capital remains in the Corporate and Other segment; and

•$37 million decrease in operating costs and other expenses, net of deferrals, primarily due to deferred compensation expenses in 2022.

This increase was partially offset by:

•$52 million higher interest expense incurred in the current year primarily related to our senior notes.

Investments

Our investment portfolio primarily consists of fixed-income securities and loans, primarily publicly-traded corporate and government bonds, private securities and loans, asset-backed securities and mortgage loans. Asset-backed securities include mortgage-backed and other structured securities. The fair value of these and our other invested assets fluctuates depending on market and other general economic conditions and the interest rate environment and could be adversely impacted by other economic factors.

Investment Strategy

Our overall investment strategy is to maintain a diversified and largely investment grade fixed income portfolio that is capital efficient, achieves risk-adjusted returns that support competitive pricing for our products, generates profitable growth of our business and maintains adequate liquidity to support our obligations. The investments within our investment portfolio are primarily managed by PPM, our wholly-owned registered investment advisor. Our investment strategy benefits from PPM’s ability to originate investments directly, as well as participate in transactions originated by banks, investment banks, commercial finance companies and other intermediaries. Certain investments held in funds withheld accounts for reinsurance transactions are managed by Apollo Insurance Solutions Group LP ("Apollo"), an Athene affiliate, see Note 8 of Condensed Consolidated Financial Statements for further details. We may also use other third-party investment managers for certain niche asset classes. As of September 30, 2022, Apollo managed $21 billion of cash and investments and other third-party investment managers represented approximately $191 million of investments.

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Our investment program seeks to generate a competitive rate of return on our invested assets to support the profitable growth of our business, while maintaining investment portfolio allocations within the company’s risk tolerance. This means maximizing risk-adjusted return within the context of a largely fixed income portfolio while also managing exposure to downside risk in a stressed environment, regulatory and rating agency capital models, overall portfolio yield, diversification and correlation with other investments and company exposures.

Our Investment Committee has specified a target strategic asset allocation (“SAA”) that is designed to deliver the highest expected return within a defined risk tolerance while meeting other important objectives such as those mentioned in the prior paragraph. The fixed income portion of the SAA is assessed relative to a customized index of public corporate bonds that represents a close approximation of the maturity profile of our liabilities and a credit quality mix that is consistent with our risk tolerance. PPM’s objective is to outperform this index on a number of measures including portfolio yield, total return and capital loss due to downgrades and defaults. While PPM has access to a broad universe of potential investments, we believe grounding the investment program with a customized public corporate index that can be easily tracked and monitored helps guide PPM in meeting the risk and return expectations and assists with performance evaluation.

Recognizing the trade-offs between the level of risk, required capital, liquidity and investment return, the largest allocation within our investment portfolio is to investment grade fixed income securities. As previously mentioned, our investment manager accesses a broad universe of potential investments to construct the investment portfolio and considers the benefits of diversification across various sectors, collateral types and asset classes. To this end, our SAA and investment portfolio includes allocations to public and private corporate bonds (both investment grade and high yield), mortgage loans, structured securities, private equity and U.S. Treasury securities. These U.S. Treasury securities, while lower yielding than other alternatives, provide a higher level of liquidity and play a role in managing our interest rate exposure.

As of September 30, 2022 and December 31, 2021, we had total investments of $65.9 billion and $74.2 billion, respectively.

Portfolio Composition

The following table summarizes the carrying values of our investments:

	September 30, 2022						December 31, 2021
	Investments excluding Funds Withheld		Funds Withheld		Total		Investments excluding Funds Withheld		Funds Withheld		Total
	(in millions)
Debt Securities, available-for-sale, net of allowance for credit losses	$	27,762	$	13,919	$	41,681	$	32,453	$	19,094	$	51,547
Debt Securities, at fair value under fair value option	1,966		158		2,124		1,547		164		1,711
Debt securities, trading, at fair value	102		—		102		117		—		117
Equity securities, at fair value	150		84		234		163		116		279
Mortgage loans, net of allowance for credit losses	6,877		4,346		11,223		6,743		4,739		11,482
Mortgage loans, at fair value under fair value option	—		508		508		—		—		—
Policy loans	946		3,500		4,446		992		3,483		4,475
Freestanding derivative instruments	1,807		143		1,950		1,375		42		1,417
Other invested assets	2,753		869		3,622		2,484		715		3,199
Total investments	$	42,363	$	23,527	$	65,890	$	45,874	$	28,353	$	74,227

Available-for-sale debt securities decreased to $41,681 million at September 30, 2022 from $51,547 million at December 31, 2021, primarily due to a decrease in net unrealized gain. The amortized cost of debt securities, available-for-sale, decreased from $51,206 million as of December 31, 2021 to $51,094 million as of September 30, 2022. Further, net unrealized gains on these assets decreased from a net unrealized gain of $2,178 million as of December 31, 2021 to a net unrealized loss of $7,156 million as of September 30, 2022.

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Other Invested Assets

In June 2021, we entered into an arrangement to sell $420 million of limited partnership investments, of which $236 million and $168 million were sold in the second and third quarter of 2021, respectively, and the remainder was sold in January 2022. We expect to reinvest in new LPs as attractive opportunities become available. The increase in Other Invested Assets from December 31, 2021 to September 30, 2022 primarily resulted from the increased valuations of limited partnership investments.

Debt Securities

At September 30, 2022 and December 31, 2021, the amortized cost, allowance for credit loss, gross unrealized gains and losses, and fair value of debt securities, including trading securities and securities carried at fair value under the fair value option, were as follows (in millions):

September 30, 2022	Amortized Cost		Allowance for Credit Loss		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
U.S. government securities	$	5,064	$	—	$	—	$	1,008	$	4,056
Other government securities	1,712		3		2		262		1,449
Corporate securities
Utilities	5,901		—		19		811		5,109
Energy	3,083		18		5		476		2,594
Banking	2,097		—		1		287		1,811
Healthcare	3,084		—		6		497		2,593
Finance/Insurance	4,632		4		2		714		3,916
Technology/Telecom	2,413		1		—		356		2,056
Consumer goods	2,463		—		3		444		2,022
Industrial	1,734		—		6		213		1,527
Capital goods	2,137		—		1		253		1,885
Real estate	1,690		—		—		248		1,442
Media	1,277		—		1		199		1,079
Transportation	1,647		—		1		239		1,409
Retail	1,352		—		3		207		1,148
Other (1)	2,139		—		1		227		1,913
Total Corporate Securities	35,649		23		49		5,171		30,504
Residential mortgage-backed	492		5		20		52		455
Commercial mortgage-backed	1,818		—		—		173		1,645
Other asset-backed securities	6,359		—		9		570		5,798
Total Debt Securities	$	51,094	$	31	$	80	$	7,236	$	43,907
(1) No single remaining industry exceeds 3% of the portfolio.

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December 31, 2021	Amortized Cost		Allowance for Credit Loss		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
U.S. government securities	$	4,525	$	—	$	97	$	301	$	4,321
Other government securities	1,489		—		147		17		1,619
Corporate securities
Utilities	6,069		—		671		25		6,715
Energy	2,872		—		222		16		3,078
Banking	1,944		—		79		10		2,013
Healthcare	3,196		—		175		21		3,350
Finance/Insurance	4,299		—		228		47		4,480
Technology/Telecom	2,376		—		123		26		2,473
Consumer goods	2,525		—		123		38		2,610
Industrial	1,996		—		118		10		2,104
Capital goods	2,206		—		134		8		2,332
Real estate	1,805		—		82		11		1,876
Media	1,187		—		84		19		1,252
Transportation	1,789		—		105		13		1,881
Retail	1,289		—		75		13		1,351
Other (1)	2,217		—		134		5		2,346
Total Corporate Securities	35,770		—		2,353		262		37,861
Residential mortgage-backed	528		2		46		3		569
Commercial mortgage-backed	1,968		—		76		6		2,038
Other asset-backed securities	6,926		7		71		23		6,967
Total Debt Securities	$	51,206	$	9	$	2,790	$	612	$	53,375
(1) No single remaining industry exceeds 3% of the portfolio.

Debt Securities Credit Quality

The following tables set forth the composition of the fair value of debt securities, including both those held as available-for-sale and for trading, as classified by rating categories as assigned by nationally recognized statistical rating organizations (“NRSRO”), the NAIC or, if not rated by such organizations, our consolidated investment advisor, PPM. The Company uses the second lowest rating by an NRSRO when NRSRO ratings are not equivalent and, for purposes of the table, if not otherwise rated by a NRSRO, the NAIC rating of a security is converted to an equivalent NRSRO-style rating.

	Percent of Total Debt Securities Carrying Value
	September 30,		December 31,
Investment Rating	2022		2021
AAA	15.3	%	14.5	%
AA	8.8	%	9.6	%
A	29.9	%	28.5	%
BBB	38.2	%	40.9	%
Investment grade	92.2	%	93.5	%
BB	4.0	%	3.6	%
B and below	3.8	%	2.9	%
Below investment grade	7.8	%	6.5	%
Total debt securities	100.0	%	100.0	%

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Unrealized Losses

The following tables summarize the amount of gross unrealized losses, fair value and the number of securities aggregated by investment category and length of time that individual debt securities have been in a continuous loss position (in millions):

	September 30, 2022					December 31, 2021
	Less than 12 months					Less than 12 months
	Gross		Fair Value			Gross		Fair Value
	Unrealized				# of	Unrealized				# of
	Losses				securities	Losses				securities
U.S. government securities	$	276	$	2,260	41	$	2	$	107	16
Other government securities	256		1,371		154	17		252		23
Public utilities	659		4,476		530	17		721		93
Corporate securities	3,217		19,878		2,649	180		6,343		728
Residential mortgage-backed	40		293		217	3		174		109
Commercial mortgage-backed	146		1,537		192	5		314		37
Other asset-backed securities	519		4,912		610	22		3,224		338
Total temporarily impaired securities	$	5,113	$	34,727	4,393	$	246	$	11,135	1,344
	12 months or longer					12 months or longer
	Gross		Fair Value			Gross		Fair Value
	Unrealized				# of	Unrealized				# of
	Losses				securities	Losses				securities
U.S. government securities	$	732	$	1,634	8	$	299	$	3,190	7
Other government securities	6		47		10	—		4		2
Public utilities	152		336		55	7		99		8
Corporate securities	1,143		2,704		396	58		661		69
Residential mortgage-backed	12		71		75	—		11		12
Commercial mortgage-backed	27		95		16	1		30		3
Other asset-backed securities	51		309		41	1		11		3
Total temporarily impaired securities	$	2,123	$	5,196	601	$	366	$	4,006	104
	Total					Total
	Gross		Fair Value			Gross		Fair Value
	Unrealized				# of	Unrealized				# of
	Losses				securities (1)	Losses				securities (1)
U.S. government securities	$	1,008	$	3,894	43	$	301	$	3,297	23
Other government securities	262		1,418		164	17		256		25
Public utilities	811		4,812		575	24		820		101
Corporate securities	4,360		22,582		2,936	238		7,004		797
Residential mortgage-backed	52		364		292	3		185		121
Commercial mortgage-backed	173		1,632		207	6		344		40
Other asset-backed securities	570		5,221		651	23		3,235		341
Total temporarily impaired securities	$	7,236	$	39,923	4,868	$	612	$	15,141	1,448

(1) Certain securities contain multiple lots and fit the criteria of both aging groups.

The increase in rates on U.S. Treasury securities and the widening credit spreads of investment grade corporate securities resulted in the reduction in fair values and increase in unrealized losses during the nine months ended September 30, 2022. Of the $6,624 million total increase in unrealized losses and the $24,782 million additional fair value on securities with an associated unrealized loss, $2,784 million and $5,219 million, respectively, are associated with assets subject to funds withheld agreements.

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Evaluation of Available-For-Sale Debt Securities

See Note 4 to Condensed Consolidated Financial Statements for information about how we evaluate our available-for-sale debt securities for credit loss.

The following table summarizes net gains (losses) on derivatives and investments (in millions):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Available-for-sale securities
Realized gains on sale	$	3	$	28	$	32	$	149
Realized losses on sale	(57)		(1)		(298)		(59)
Credit loss income (expense)	(6)		(17)		(5)		(10)
Credit loss income (expense) on mortgage loans	(5)		14		(2)		62
Other (1)	59		13		142		62
Net gains (losses) excluding derivatives and funds withheld assets	(6)		37		(131)		204
Net gains (losses) on derivative instruments	870		(1,301)		4,362		(1,413)
Net gains (losses) on funds withheld reinsurance treaties	555		(115)		2,660		15
Total net gains (losses) on derivatives and investments	$	1,419	$	(1,379)	$	6,891	$	(1,194)
(1) Includes the foreign currency gain or loss related to foreign denominated mortgage loans and trust instruments supporting funding agreements.

Equity Securities

Equity securities consist of investments in common and preferred stock holdings and mutual fund investments. Common and preferred stock investments generally arise out of previous private equity investments or other settlements rather than as direct investments. Mutual fund investments typically represent investments made in our own mutual funds to seed those structures for external issuance at a later date. The following table summarizes our holdings:

	September 30,		December 31,
	2022		2021
	(in millions)
Common Stock	$	92	$	78
Preferred Stock	116		168
Mutual Funds	26		33
Total	$	234	$	279

Mortgage Loans

Commercial mortgage loans of $10.5 billion and $10.5 billion at September 30, 2022 and December 31, 2021, respectively, are reported net of an allowance for credit losses of $76 million and $85 million at each date, respectively. At September 30, 2022, commercial mortgage loans were collateralized by properties located in 38 states, the District of Columbia, and Europe. Residential mortgage loans of $1,280 million and $939 million at September 30, 2022 and December 31, 2021, respectively, are reported net of an allowance for credit losses of $3 million and $9 million at each date, respectively. Loans were collateralized by properties located in 50 states, the District of Columbia, Mexico, and Europe.

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The table below presents the carrying value, net of allowance of credit loss, of our mortgage loans by property type:

	September 30,		December 31,
	2022		2021
	(in millions)
Commercial:
Apartment	$	3,775	$	3,755
Hotel	1,025		1,054
Office	1,885		1,889
Retail	2,093		2,104
Warehouse	1,673		1,741
Total Commercial	$	10,451	$	10,543
Residential	1,280		939
Total	$	11,731	$	11,482

The table below presents the carrying value, net of allowance for credit loss, of our mortgage loans by region:

	September 30,		December 31,
	2022		2021
	(in millions)
United States:
East North Central	$	1,166	$	1,184
East South Central	537		491
Middle Atlantic	1,624		1,558
Mountain	604		688
New England	475		452
Pacific	3,079		2,897
South Atlantic	2,220		2,295
West North Central	560		552
West South Central	953		829
Total United States	11,218		10,946
Foreign	513		536
Total	$	11,731	$	11,482

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The following table provides information about the credit quality of our mortgage loans:

	September 30,		December 31,
	2022		2021
	(in millions)
Commercial mortgage loans
Loan to value ratios:
Less than 70%	$	9,738	$	9,819
70% - 80%	675		670
80% - 100%	29		44
Greater than 100%	9		10
Total	10,451		10,543
Residential mortgage loans
Performing	1,207		727
Nonperforming (1)	73		212
Total	1,280		939
Total mortgage loans	$	11,731	$	11,482

(1) As of September 30, 2022 and December 31, 2021, includes $48 million and $202 million of loans purchased when the loans were greater than 90 days delinquent and $14 million and $5 million of loans in process of foreclosure, respectively, and are supported with insurance or other guarantees provided by various governmental programs.

The following table provides a summary of the allowance for credit losses related to our mortgage loans:

	September 30,
	2022		2021
	(in millions)
Balance at beginning of year	$	94	$	179
Provision (release)	(15)		(83)
Balance at end of period	$	79	$	96

The Company’s mortgage loans that are current and in good standing are accruing interest. Interest is not accrued on loans greater than 90 days delinquent and in process of foreclosure, when deemed uncollectible. Delinquency status is determined from the date of the first missed contractual payment.

At September 30, 2022, there was $17 million of recorded investment, $18 million of unpaid principal balance, no related loan allowance, $15 million of average recorded investment, and no investment income recognized on impaired residential mortgage loans.

At December 31, 2021, there was $6 million of recorded investment, $7 million of unpaid principal balance, no related loan allowance, $2 million of average recorded investment, and no investment income recognized on impaired residential mortgage loans.

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Derivative Instruments

The following table presents the aggregate contractual or notional amounts and the fair values of our freestanding and embedded derivatives instruments (in millions):

	September 30, 2022
	Contractual/		Assets		Liabilities		Net
	Notional		Fair		Fair		Fair Value
	Amount (1)		Value		Value		Asset (Liability)
Freestanding derivatives
Cross-currency swaps	$	1,825	$	92	$	166	$	(74)
Equity index call options	15,500		27		—		27
Equity index futures (2)	28,891		—		—		—
Equity index put options	33,000		1,564		—		1,564
Interest rate swaps	7,728		4		238		(234)
Interest rate swaps - cleared (2)	1,500		—		—		—
Put-swaptions	22,000		—		1,781		(1,781)
Interest rate futures (2)	55,071		—		—		—
Total return swaps	739		80		—		80
Total freestanding derivatives	166,254		1,767		2,185		(418)
Embedded derivatives
Variable annuity embedded derivatives (3)	N/A		484		—		484
Fixed index annuity embedded derivatives (4)	N/A		—		967		(967)
Registered index linked annuity embedded derivatives (4)	N/A		—		10		(10)
Total embedded derivatives	N/A		484		977		(493)
Derivatives related to funds withheld under reinsurance treaties
Cross-currency swaps	158		32		—		32
Cross-currency forwards	1,460		151		40		111
Funds withheld embedded derivative (5)	N/A		3,332		—		3,332
Total derivatives related to funds withheld under reinsurance treaties	1,618		3,515		40		3,475
Total	$	167,872	$	5,766	$	3,202	$	2,564

(1) The notional amount for swaps and swaptions represents the stated principal balance used as a basis for calculating payments. The contractual amount for futures and options represents the market exposure of open positions.

(2) Variation margin is considered settlement resulting in the netting of cash received/paid for variation margin against the fair value of the trades.

(3) Included within reserves for future policy benefits and claims payable on the Condensed Consolidated Balance Sheets. The nonperformance risk adjustment is included in the balance above.

(4) Included within other contract holder funds on the Condensed Consolidated Balance Sheets. The nonperformance risk adjustment is included in the balance above.

(5) Included within funds withheld payable under reinsurance treaties on the Condensed Consolidated Balance Sheets.

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	December 31, 2021
	Contractual/		Assets		Liabilities		Net
	Notional		Fair		Fair		Fair Value
	Amount (1)		Value		Value		Asset (Liability)
Freestanding derivatives
Cross-currency swaps	$	1,767	$	55	$	35	$	20
Equity index call options	21,000		606		—		606
Equity index futures (2)	18,258		—		—		—
Equity index put options	27,500		150		—		150
Interest rate swaps	7,728		430		—		430
Interest rate swaps - cleared (2)	1,500		—		—		—
Put-swaptions	19,000		133		—		133
Interest rate futures (2)	912		—		—		—
Total return swaps	—		—		—		—
Total freestanding derivatives	97,665		1,374		35		1,339
Embedded derivatives
Variable annuity embedded derivatives (3)	N/A		—		2,626		(2,626)
Fixed index annuity embedded derivatives (4)	N/A		—		1,439		(1,439)
Registered index linked annuity embedded derivatives (4)	N/A		—		6		(6)
Total embedded derivatives	N/A		—		4,071		(4,071)
Derivatives related to funds withheld under reinsurance treaties
Cross-currency swaps	158		10		1		9
Cross-currency forwards	1,119		33		5		28
Funds withheld embedded derivative (5)	N/A		—		120		(120)
Total derivatives related to funds withheld under reinsurance treaties	1,277		43		126		(83)
Total	$	98,942	$	1,417	$	4,232	$	(2,815)

(1) The notional amount for swaps and swaptions represents the stated principal balance used as a basis for calculating payments. The contractual amount for futures and options represents the market exposure of open positions.

(2) Variation margin is considered settlement resulting in the netting of cash received/paid for variation margin against the fair value of the trades.

(3) Included within reserves for future policy benefits and claims payable on the Condensed Consolidated Balance Sheets. The nonperformance risk adjustment is included in the balance above.

(4) Included within other contract holder funds on the Condensed Consolidated Balance Sheets. The nonperformance risk adjustment is included in the balance above.

(5) Included within funds withheld payable under reinsurance treaties on the Condensed Consolidated Balance Sheets.

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Investment Income

Our sources of net investment income are as follows (in millions):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Debt securities (1)	$	306	$	272	$	792	$	872
Equity securities	(25)		—		(18)		6
Mortgage loans	70		79		211		242
Policy loans	18		20		52		55
Limited partnerships	(7)		193		151		586
Other investment income	14		2		25		10
Total investment income excluding funds withheld assets	376		566		1,213		1,771
Net investment income on funds withheld assets	313		300		937		884
Investment expenses:
Derivative trading commission	(3)		(1)		(5)		(2)
Depreciation on real estate	(2)		(4)		(8)		(8)
Expenses related to consolidated entities (2)	(26)		(8)		(62)		(24)
Other investment income (expense) (3)	(18)		(16)		(53)		(53)
Total investment expenses	(49)		(29)		(128)		(87)
Net investment income	$	640	$	837	$	2,022	$	2,568

(1) Includes unrealized gains and losses on trading securities and includes $(8) million and $(103) million for the three and nine months ended September 30, 2022, respectively, and $(1) and $37 million for the three and nine months ended September 30, 2021, respectively, related to the change in fair value for securities carried under the fair value option.

(2) Includes interest expense and change in fair value related to notes issued by consolidated VIE's, management fees, administrative fees, legal fees, and other expenses related to the consolidation of certain investments.

(3) Includes interest expense, investment software expense, custodial fees, and other bank fees; institutional product issuance related expenses; and other expenses.

Evaluation of Invested Assets

We perform regular evaluations of our invested assets. On a monthly basis, management identifies those investments that may require additional monitoring and carefully reviews the carrying value of such investments to determine whether specific investments should be placed on a non-accrual status and to determine if an allowance for credit loss is required. In making these reviews, management principally considers the adequacy of any collateral, compliance with contractual covenants, the borrower’s recent financial performance, news reports and other externally generated information concerning the issuer’s affairs. In the case of publicly traded bonds, management also considers market value quotations, where available. For mortgage loans, management generally considers information concerning the mortgaged property and, among other things, factors impacting the current and expected payment status of the loan and, if available, the current fair value of the underlying collateral. For investments in partnerships, management reviews the financial statements and other information provided by the general partners.

In determination of an allowance for credit loss, we consider a security’s forecasted cash flows as well as the severity of depressed fair values. Investment income is not accrued on securities in default and otherwise where the collection is uncertain. Subsequent receipts of interest on such securities are generally used to reduce the cost basis of the securities. The provisions for impairment on mortgage loans are based on losses expected by management to be realized on transfers of mortgage loans to real estate, on the disposition and settlement of mortgage loans and on mortgage loans that management believes may not be collectible in full. Accrual of interest on mortgage loans is generally suspended when principal or interest payments on mortgage loans are past due more than 90 days. Interest is then accounted for on a cash basis.

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Item 2 | Management’s Discussion and Analysis | Policy and Contract Liabilities

Policy and Contract Liabilities

We establish, and carry as liabilities, actuarially determined amounts that are calculated to meet policy obligations or to provide for future annuity payments. Amounts for actuarial liabilities are computed and reported on the Condensed Consolidated Financial Statements in conformity with GAAP. For more details on Policyholder Liabilities, see "Management’s Discussion and Analysis of Financial Condition and Results of Operations — Critical Accounting Estimates” included in our 2021 Annual Report.

As an insurance company, a substantial portion of our profits are derived from fee income and the invested assets backing our policy and contract liabilities, which includes separate account liabilities, reserves for future policy benefits and claims payable and other contract holder funds. As of September 30, 2022, 88% of our policy and contract liabilities were in our Retail Annuities segment, 3% were in our Institutional Products segment and 9% were in our Closed Life and Annuity Blocks segment.

The table below represents a breakdown of our policy and contract liabilities:

September 30, 2022	Separate Accounts		Reserves for future policy benefits		Other contract holder funds		Total
	(in millions)
Variable Annuities	$	184,976	$	2,691	$	10,751	$	198,418
Registered Index Linked Annuities	—		—		1,235		1,235
Fixed Annuities	—		848		11,451		12,299
Fixed Index Annuities	—		—		12,126		12,126
Payout Annuities	—		—		1,375		1,375
Total Retail Annuities	184,976		3,539		36,938		225,453
Total Institutional Products	—		—		8,358		8,358
Traditional Life	—		4,564		4,158		8,722
Interest-sensitive Life	66		1,735		7,195		8,996
Group Payout Annuities	—		4,660		—		4,660
Other Annuities	—		18		1,345		1,363
Total Closed Life and Annuity Blocks	66		10,977		12,698		23,741
Total Policy and Contract Liabilities	185,042		14,516		57,994		257,552
Claims payable and other	—		1,614		180		1,794
Total	$	185,042	$	16,130	$	58,174	$	259,346

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Item 2 | Management’s Discussion and Analysis | Policy and Contract Liabilities

December 31, 2021	Separate Accounts		Reserves for future policy benefits		Other contract holder funds		Total
	(in millions)
Variable Annuities	$	248,859	4,609		9,751		263,219
Registered Index Linked Annuities	—		—		110		110
Fixed Annuities	—		858		12,316		13,174
Fixed Index Annuities	—		50		13,161		13,211
Payout Annuities	—		—		1,399		1,399
Total Retail Annuities	248,859		5,517		36,737		291,113
Total Institutional Products	—		—		8,830		8,830
Traditional Life	—		4,762		4,161		8,923
Interest-sensitive Life	90		1,797		7,410		9,297
Group Payout Annuities	—		4,895		—		4,895
Other Annuities	—		17		1,399		1,416
Total Closed Life and Annuity Blocks	90		11,471		12,970		24,531
Total Policy and Contract Liabilities	248,949		16,988		58,537		324,474
Claims payable and other	—		1,679		189		1,868
Total	$	248,949	$	18,667	$	58,726	$	326,342

As of September 30, 2022, $185.0 billion or 72% of our policy and contract liabilities were backed by separate accounts assets. These separate account assets backed reserves primarily related to our variable annuities. Separate account liabilities are fully funded by cash flows from the customer’s corresponding separate account assets and are set equal to the fair value of such invested assets. We generate revenue on our separate account liabilities primarily from asset-based fee income. Separate account assets and associated liabilities are subject to variability driven by the performance of the underlying investments, which are exposed to fluctuations in equity markets and bond fund valuations. As a result, revenue derived from asset-based fee income is similarly subject to variability in line with the variability of the underlying separate account assets.

As of September 30, 2022, $49.3 billion or 19% of our policy and contract liabilities were backed by our investment portfolio and $23.2 billion reinsured by Athene, were backed by funds withheld assets. Our variable annuity fixed account option, variable annuity guaranteed benefit and other reserves, our RILA and fixed annuities and fixed index annuities reserves, not reinsured, our Institutional Products segment reserves, as well as our Closed Life and Annuity Blocks segment reserves, were primarily backed by our investment portfolio. As of September 30, 2022, our general account policy and contract liabilities, net of those ceded to Athene, were composed of 3% for registered index linked annuities, 5% for fixed index annuities and fixed deferred and payout annuities, 17% for Institutional Products segment, 21% for fixed account option variable annuities, 6% for guaranteed benefit and other variable annuity reserves, and a 48% Closed Life and Annuity Block segment reserves. As of September 30, 2022, 38% of our fixed annuity and fixed index annuity policy and contract liabilities were subject to surrender charges of at least 5% or at market value in the event of discretionary withdrawal by customers. As of September 30, 2022, 100% of our RILA policy and contract liabilities were subject to surrender charges of at least 5% or at market value in the event of discretionary withdrawal by customers. We have the discretion, subject to contractual limitations and minimums, to reset the crediting terms on the majority of our fixed index annuities and fixed annuities. As of September 30, 2022, 94% of fixed annuity, fixed-indexed annuity, and the fixed accounts of RILA and variable annuity correspond to crediting rates that are at the guaranteed minimum crediting rate.

Liabilities for other contract holder funds are policy account balances on interest-sensitive life insurance, fixed annuities, fixed index annuities, RILA and variable annuity or variable life insurance contract allocations to fixed fund options. These account balance liabilities are equal to the sum of deposits, plus interest credited, less charges and withdrawals.

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Item 2 | Management’s Discussion and Analysis | Policy and Contract Liabilities

We establish reserves for future policy benefits and claims payable under insurance policies using methodologies consistent with U.S. GAAP. Reserves for insurance policies are generally equal to the present value of future expected benefits to be paid, reduced by the present value of future expected revenue. The assumptions used in establishing reserves are generally based on our experience, industry benchmarking or other factors, as applicable. Annually, or as circumstances warrant, we conduct a comprehensive review of our actuarial assumptions, and update those assumptions when appropriate. The principal assumptions used in the establishment of reserves for future policy benefits are policy lapse, mortality, benefit utilization and withdrawals, investment returns, and expenses. Generally, we do not expect trends that impact our assumptions to change significantly in the short-term and, to the extent these trends may change, we expect such changes to be gradual over the long-term.

For non–life-contingent components of Guaranteed Minimum Withdrawal Benefits ("GMWB") features available in our variable annuities, the guaranteed benefits are accounted for as embedded derivatives, with fair values calculated as the present value of expected future guaranteed benefit payments to contract holders less the present value of assessed rider fees attributable to the embedded derivative feature. In accordance with U.S. GAAP, the fair values of these guaranteed benefit features are based on assumptions a market participant would use in valuing these embedded derivatives. Changes in the fair value of the embedded derivatives are recorded through a benefit or charge to current period earnings. Movements in the fair value of the embedded derivatives are typically in the opposite direction relative to primary market risks. Specifically, downward movements in equity market levels reduce contract holder account value and typically correlate with an increased likelihood that outstanding guaranteed benefits will result in a claim, increasing the fair value liability. Similarly, downward movements in interest rates lower the assumed future market growth and typically correlate with an increased likelihood that outstanding guaranteed benefits will result in a claim, increasing the fair value liability. Downward movements in interest rates also lower the discount rates used in the calculation of the fair value liability associated with higher projected future guaranteed benefit payments, which increases the fair value liability.

For reserves related to the life-contingent components of guaranteed benefit features available in our variable annuities, fixed index annuities and RILA, we calculate the change in reserves by applying a “benefit ratio” to total assessments received in the period. The benefit ratio is determined by dividing the present value of total expected benefit payments by the present value of total expected assessments, primarily fees based on account value or benefit base, over the life of the contract. The level and direction of the change in reserves will vary over time based on the benefit ratio and the level of assessments associated with the variable annuity, fixed index annuity, or RILA. These reserves typically move in the opposite direction relative to primary market risks. Specifically, downward movements in equity market levels will reduce contract holder account value and typically correlate with an increased likelihood that outstanding guaranteed benefits will result in a claim, which increases the reserve.

For traditional life insurance and payout annuities, reserves for future policy benefits are measured using assumptions determined as of the issuance date or acquisition date with provisions for the risk of adverse deviation, as appropriate. These assumptions are not unlocked unless a premium deficiency exists. At least annually, we perform premium deficiency tests using best estimate assumptions as of the testing date without provision for adverse deviation. If the liabilities determined based on these best estimate assumptions are greater than the net reserves (i.e., U.S. GAAP reserves net of any DAC or reinsurance), the existing net reserves are adjusted by first reducing the DAC or DSI by the amount of the deficiency (or to zero) through a charge to current period earnings. If the deficiency is more than these asset balances, we increase the reserves by the excess through a charge to current period earnings. If a premium deficiency is recognized, the assumptions as of the premium deficiency test date are locked in and used in subsequent reserve measurements, and the net reserves continue to be subject to premium deficiency testing. In a sustained low interest rate environment, there is generally an increased likelihood that the liabilities determined based on best estimate assumptions will be greater than the net reserves.

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Item 2 | Management’s Discussion and Analysis | Liquidity and Capital Resources

Liquidity and Capital Resources

Liquidity is our ability to generate sufficient cash flows to meet the cash requirements of operating, investing and financing activities. Capital refers to our long-term financial resources available to support the business operations and contribute to future growth. Our ability to generate and maintain sufficient liquidity and capital depends on the profitability of the businesses, timing of cash flows on investments and products, general economic conditions and access to the capital markets and the alternate sources of liquidity and capital described herein.

The discussion below describes our liquidity and capital resources for the nine months ended September 30, 2022 and 2021.

Cash Flows

The following table presents a summary of our cash flow activity for the periods set forth below:

	Nine Months Ended September 30,
	2022		2021
	(in millions)
Net cash provided by (used in) operating activities	$	2,941	$	3,535
Net cash provided by (used in) investing activities	2,469		624
Net cash provided by (used in) financing activities	(2,700)		(3,696)
Net increase (decrease) in cash, cash equivalents, and restricted cash	2,710		463
Cash, cash equivalents, and restricted cash at beginning of period	2,631		2,019
Total cash, cash equivalents, and restricted cash at end of period	$	5,341	$	2,482

Cash flows provided by Operating Activities

The principal operating cash inflows from our insurance activities come from insurance premiums, fees charged on our products and net investment income. The principal operating cash outflows are the result of annuity and life insurance benefits, interest credited on other contract holder funds, operating expenses and income tax, as well as interest expense. The primary liquidity concern with respect to these cash flows is the risk of early contract holder and policyholder benefit payments.

Cash flows provided by (used in) operating activities decreased $594 million to $2,941 million for the nine months ended September 30, 2022 from $3,535 million for the nine months ended September 30, 2021. This decrease was primarily due to lower investment income as a result of lower income on limited partnership investments in 2022, compared to the prior year.

Cash flows provided by (used in) Investing Activities

The principal cash inflows from our investment activities come from repayments of principal, proceeds from maturities and sales of investments, as well as settlements of freestanding derivatives. The principal cash outflows relate to purchases of investments and settlements of freestanding derivatives. It is not unusual to have a net cash outflow from investing activities because cash inflows from insurance operations are typically reinvested to fund insurance liabilities. We closely monitor and manage these risks through our comprehensive investment risk management process. The primary liquidity concerns with respect to these cash flows are the risk of default by debtors or market disruptions that might impact the timing of investment related cash flows as well as derivative collateral needs.

Cash flows provided by (used in) investing activities increased $1,845 million to $2,469 million during the nine months ended September 30, 2022 from $624 million during the nine months ended September 30, 2021. This increase was primarily due to inflows related to our hedging program for derivative settlements and collateral predominantly resulting from movements in the equity markets in 2022 compared to outflows in 2021, partially offset by lower sales of funds withheld assets in 2022, as compared to 2021.

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Item 2 | Management’s Discussion and Analysis | Liquidity and Capital Resources

Cash flows provided by (used in) Financing Activities

The principal cash inflows from our financing activities come from deposits of funds associated with policyholder account balances, issuance of debt, and lending of securities. The principal cash outflows come from withdrawals associated with policyholder account balances, repayment of debt, and the return of securities on loan. The primary liquidity concerns with respect to these cash flows are market disruption and the risk of early policyholder withdrawal.

Cash flows provided by (used in) financing activities increased $996 million to $(2,700) million during the nine months ended September 30, 2022 from $(3,696) million during the nine months ended September 30, 2021. This increase was primarily due to decreased withdrawals of policyholders' account balances during 2022 compared to 2021. This favorable variance was partially offset by higher inflows in the prior year related to debt agreements entered into in 2021.

Statutory Capital

Our insurance company subsidiaries have statutory surplus above the level needed to meet current regulatory requirements. RBC requirements are used as minimum capital requirements by the NAIC and the state insurance departments to identify companies that merit regulatory action. RBC is based on a formula that incorporates both factor-based components (applied to various asset, premium, claim, expense and statutory reserve items) and model-based components. The formula takes into account the risk characteristics of the insurer, including asset risk, insurance risk, interest rate risk, market risk and business risk and is calculated on an annual basis. The formula is used as an early warning regulatory tool to identify possible inadequately capitalized insurers for purposes of initiating regulatory action, and not to rank insurers generally. As of September 30, 2022, our insurance companies were well in excess of the minimum required capital levels. Jackson is also subject to risk-based capital guidelines that provide a method to measure the adjusted capital that a life insurance company should have for regulatory purposes, taking into account the risk characteristics of Jackson’s investments and products.

Holding Company Liquidity

As a holding company with no business operations of its own, Jackson Financial primarily derives cash flows from dividends and interest payments from its insurance subsidiaries. These principal sources of liquidity are expected to be supplemented by cash and short-term investments held by Jackson Financial and access to bank lines of credit and the capital markets. We intend to maintain a minimum amount of cash and highly liquid securities at Jackson Financial adequate to fund two years of holding company fixed expenses which is currently targeted at $250 million. The main uses of liquidity for Jackson Financial are interest payments and debt repayment, holding company operating expenses, payment of dividends and other distributions to shareholders, which may include stock repurchases, and capital contributions, if needed, to our insurance company subsidiaries. Our principal sources of liquidity and our anticipated capital position are described in the following paragraphs.

Distributions from our Insurance Company Subsidiaries

The ability of our insurance company subsidiaries to pay dividends is limited by applicable laws and regulations of the jurisdictions where such subsidiaries are domiciled as well as agreements entered into with regulators. These laws and regulations require, among other things, our insurance company subsidiaries to maintain minimum solvency requirements and limit the amount of dividends these subsidiaries can pay.

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Item 2 | Management’s Discussion and Analysis | Liquidity and Capital Resources

Subject to these limitations, our insurance company subsidiaries are permitted to pay ordinary dividends based on calculations specified under insurance laws of the relevant state of domicile, subject to prior notification to the appropriate regulatory agency. Any distributions above the amount permitted by statute in any twelve-month period are considered extraordinary dividends, and the approval of the appropriate regulator is required prior to payment. In Michigan, the Director of the Michigan Department of Insurance and Financial Services (the Michigan Director of Insurance) may limit, or not permit, the payment of dividends from either Jackson or Brooke Life, Jackson's direct parent company, if it determines that the surplus of either these subsidiaries is not reasonable in relation to their outstanding liabilities and is not adequate to meet their financial needs, as required by Michigan insurance law. Unless otherwise approved by the Michigan Director of Insurance, dividends may only be paid from earned surplus. Also, surplus note arrangements and interest payments must be approved by the Michigan Director of Insurance and such interest payments to related parties reduce the otherwise calculated ordinary dividend capacity for that period. In New York, all dividends require approval from the New York State Department of Financial Services.

For 2022, Jackson and Brooke Life have total ordinary dividend capacity, based on 2021 statutory capital and surplus and statutory net gain from operations, subject to the availability of earned surplus, of $608 million and $514 million, respectively. Brooke Life, as the sole owner of our other insurance company subsidiaries, including Jackson and Jackson National Life NY, is the direct recipient of any dividend payments from those subsidiaries and must make dividend payments to its ultimate parent company, Jackson Financial, in order for any funds from our insurance company subsidiaries to reach Jackson Financial. As such, Jackson Financial’s ability to receive dividend payments from our insurance company subsidiaries is effectively limited by Brooke Life’s ability to make dividend payments to Jackson Financial.

On March 1, 2022, Jackson remitted a $600 million return of capital to its parent company, Brooke Life. Brooke Life subsequently paid a $510 million ordinary dividend to its ultimate parent, Jackson Financial. In addition, for the three and nine months ended September 30, 2022, Brooke Life paid $45 million and $90 million of interest associated with the $2 billion surplus note between Brooke Life and Jackson Finance, LLC ("Jackson Finance"), a subsidiary of Jackson Financial, respectively.

The maximum distribution permitted by law or contract is not necessarily indicative of an insurer’s actual ability to pay such distributions, which may be constrained by business and other considerations, such as imposition of withholding tax, the impact of such distributions on surplus, which could affect the insurer’s ratings or competitive position, the ability to generate new annuity sales and the ability to pay future dividends or make other distributions. Further, state insurance laws and regulations require that the statutory surplus of our insurance subsidiaries following any dividend or distribution must be reasonable in relation to their outstanding liabilities and adequate for the insurance subsidiaries’ financial needs. Along with solvency regulations, another primary consideration in determining the amount of capital used for dividends is the level of capital needed to maintain desired financial strength ratings from rating agencies, including A.M. Best, S&P, Moody’s and Fitch. Given recent economic events that have affected the insurance industry, both regulators and rating agencies could become more conservative in their methodology and criteria, including increasing capital requirements for insurance company subsidiaries. We believe our insurance company subsidiaries have sufficient statutory capital and surplus to maintain their desired financial strength rating.

Insurance Company Subsidiaries’ Liquidity

The liquidity requirements for our insurance company subsidiaries primarily relate to the liabilities associated with their insurance and reinsurance activities, operating expenses and income taxes. Liabilities arising from insurance and reinsurance activities include the payment of policyholder benefits when due, cash payments in connection with policy surrenders and withdrawals and policy loans.

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Item 2 | Management’s Discussion and Analysis | Liquidity and Capital Resources

Liquidity requirements are principally for purchases of new investments, management of derivative related margin requirements, repayment of principal and interest on debt, payments of interest on surplus notes, funding of insurance product liabilities including payments for policy benefits, surrenders, maturities and new policy loans, funding of expenses including payment of commissions, operating expenses and taxes. As of September 30, 2022, Jackson’s outstanding surplus notes and bank debt included $62 million of bank loans from the Federal Home Loan Bank of Indianapolis ("FHLBI"), collateralized by mortgage-related securities and mortgage loans and $250 million of surplus notes maturing in 2027. Significant increases in interest rates could create sudden increases in surrender and withdrawal requests by customers and contract holders, and result in increased liquidity requirements at our insurance company subsidiaries. Significant increases in interest rates or equity markets may also result in higher margin and collateral requirements on our derivative portfolio.

Other factors that are not directly related to interest rates can also give rise to an increase in liquidity requirements, including, changes in ratings from rating agencies, general policyholder concerns relating to the life insurance industry (e.g., the unexpected default of a large, unrelated life insurer) and competition from other products, including non-insurance products such as mutual funds, certificates of deposit and newly developed investment products. Most of the life insurance and annuity products Jackson offers permit the policyholder or contract holder to withdraw or borrow funds or surrender cash values. As of September 30, 2022, approximately half of Jackson’s general account reserves are either not surrenderable, included surrender charges greater than 5%, or market value adjustments to discourage early withdrawal of policy and contract funds.

The liquidity sources for our insurance company subsidiaries are their cash, short-term investments, sales of publicly traded bonds, insurance premiums, fees charged on our products, sales of annuities and institutional products, investment income, commercial repurchase agreements and utilization of a short-term borrowing facility with the FHLBI.

Jackson uses a variety of asset liability management techniques to provide for the orderly provision of cash flow from investments and other sources as policies and contracts mature in accordance with their normal terms. Jackson’s principal sources of liquidity to meet unexpected cash outflows associated with sudden and severe increases in surrenders and withdrawals or benefit payments are its portfolio of liquid assets and its net operating cash flows. As of September 30, 2022, the portfolio of cash, short-term investments and privately and publicly traded securities and equities, which are unencumbered and unrestricted to sale, amounted to $23.6 billion.

Our Indebtedness

Senior Notes

On June 8, 2022, the Company issued $750 million aggregate principal amount of its senior unsecured notes, consisting of $400 million aggregate principal amount of 5.170% Senior Notes due June 8, 2027 and $350 million aggregate principal amount of 5.670% Senior Notes due June 8, 2032. The net proceeds of these notes were used, together with cash on hand, to repay the Company’s $750 million aggregate principal amount term loan due February 2023.

On November 23, 2021, the Company issued $1.6 billion aggregate principal amount of its senior unsecured notes consisting of $600 million aggregate principal amount of 1.125% Senior Notes due November 22, 2023, $500 million aggregate principal amount of 3.125% Senior Notes due November 23, 2031, and $500 million aggregate principal amount of 4.000% Senior Notes due November 23, 2051. The proceeds of these notes were used, together with cash on hand, to repay the Company’s $1.6 billion aggregate principal amount term loan that was due May 2022.

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Item 2 | Management’s Discussion and Analysis | Liquidity and Capital Resources

Revolving Credit Agreement

The Company is party to a Revolving Facility providing for borrowings for working capital and other general corporate purposes under aggregate commitments of $1.0 billion, with a sub-limit of $500 million available for letters of credit. The Revolving Facility further provides for the ability to request, subject to customary terms and conditions, an increase in commitments thereunder by up to an additional $500 million. Commitments under the Revolving Facility terminate on February 22, 2024.

The credit agreement contains a number of customary representations and warranties, affirmative and negative covenants and events of default (including a change of control provision). Such covenants, among other things, restrict, subject to certain exceptions, our ability to pay dividends and distributions or repurchase common shares if a default or event of default has occurred and is continuing (with such negative covenant dropping away if our long term unsecured senior, non-credit enhanced, debt ratings are either (x) BBB+ or better from S&P or (y) Baa1 or better from Moody’s), incur additional indebtedness, create liens on our or our subsidiaries’ assets and make fundamental changes. The credit agreement contains financial maintenance covenants, including a minimum adjusted consolidated net worth test of no less than 70% of our adjusted consolidated net worth as of the date of the Demerger (taking into account 50% of the proceeds of any additional equity issuances) and a maximum consolidated indebtedness to total capitalization ratio test not to exceed 35%. We were in compliance with these covenants at September 30, 2022.

Surplus Notes

On March 15, 1997, our subsidiary, Jackson, issued 8.2% surplus notes in the principal amount of $250 million due March 15, 2027. These surplus notes were issued pursuant to Rule 144A under the Securities Act of 1933, as amended, and are unsecured and subordinated to all present and future indebtedness, policy claims and other creditor claims and may not be redeemed at the option of the Company or any holder prior to maturity. Interest is payable semi-annually on March 15th and September 15th of each year. Interest expense on the notes was $5 million and $15 million for both the three and nine months ended September 30, 2022 and 2021, respectively.

Under Michigan Insurance Law, for statutory reporting purposes, the surplus notes are not part of the legal liabilities of the Company and are considered surplus funds. Payments of interest or principal may only be made with the prior approval of the Michigan Director of Insurance and only out of surplus earnings which the director determines to be available for such payments under Michigan Insurance Law.

Federal Home Loan Bank

Jackson is a member of the regional FHLBI primarily for the purpose of participating in its collateralized loan advance program with funding facilities. Membership requires us to purchase and hold a minimum amount of FHLBI capital stock, plus additional stock based on outstanding advances. Advances are in the form of either notes or funding agreements issued to FHLBI. As of September 30, 2022 and December 31, 2021, Jackson held a bank loan with an outstanding balance of $62 million and $67 million, respectively.

Dividend and Stock Repurchase

Consistent with our goals to manage risk and capital and optimize our financial leverage, we generally intend to target return of capital to our shareholders, which may take the form of cash dividends and/or stock repurchases, on an annual basis of approximately 40-60% of the annual change in our excess capital, adjusted for any contributions and distributions, subject to market conditions and approval by our Board of Directors. For purposes of this analysis, we define excess capital as total adjusted capital less 400% of company action level required capital. Consistent with statutory accounting requirements, total adjusted capital is defined as Jackson’s statutory capital and surplus, plus asset valuation reserve and 50% of policyholder dividends of Jackson and its subsidiaries. Company action level required capital is the minimum amount of capital necessary for Jackson to avoid submitting a corrective action plan to its regulator.

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Any declaration of cash dividends or stock repurchases will be at the discretion of JFI’s Board of Directors and will depend on our financial condition, earnings, liquidity and capital requirements, regulatory constraints, level of indebtedness, contractual restrictions with respect to paying cash dividends or repurchasing stock, restrictions imposed by Delaware law, general business conditions and any other factors that JFI’s Board of Directors deems relevant in making any such determination. Therefore, there can be no assurance that we will pay any cash dividends to holders of our common stock or approve any increase in the existing, or any new, stock repurchase program, or as to the amount of any such cash dividends or stock repurchases.

Delaware law requires that dividends be paid and stock repurchases made only out of “surplus,” which is defined as the fair market value of our net assets, minus our stated capital; or out of the current or the immediately preceding year’s earnings. JFI is a holding company and has no direct operations. All our business operations are conducted through our subsidiaries. Any dividends we pay or stock repurchases we make will depend upon the funds legally available for distribution, including dividends or distributions from our subsidiaries to us. The states in which our insurance subsidiaries are domiciled impose certain restrictions on our insurance subsidiaries’ ability to pay dividends to their parent companies. These restrictions are based in part on the prior year’s statutory income and surplus, as well as earned surplus. Such restrictions, or any future restrictions adopted by the states in which our insurance subsidiaries are domiciled, could have the effect, under certain circumstances, of significantly reducing dividends or other amounts payable by our subsidiaries without affirmative approval of state regulatory authorities. See “Holding Company Liquidity – Distributions from our Insurance Company Subsidiaries” above, and “Part I, Item 1A. Risk Factors—As a holding company, JFI depends on the ability of its subsidiaries to meet its obligations and liquidity needs, including dividends and stock repurchases” in our 2021 Annual Report.

Dividends to Shareholders and Share Repurchases

During the third quarter of 2022, we paid a cash dividend of $0.55 per share on JFI's common stock totaling $49 million. On November 7, 2022, our Board of Directors approved a fourth quarter cash dividend on JFI's common stock of $0.55 per share, payable on December 15, 2022 to shareholders of record on December 1, 2022.

We repurchased a total of 1,200,000 shares and a total of 6,504,464 shares of common stock for an aggregate purchase price of $39 million and $245 million in the three and nine months ended September 30, 2022, respectively, which were funded with cash on hand.

See Note 18 to Condensed Consolidated Financial Statements in this Report for further information on dividends to shareholders and share repurchases.

Financial Strength Ratings

Our access to funding and our related cost of borrowing, the attractiveness of certain of our subsidiaries’ products to customers, our attractiveness as a reinsurer to potential ceding companies and requirements for derivatives collateral posting are affected by our credit ratings and financial strength ratings, which are periodically reviewed by the rating agencies. Financial strength ratings and credit ratings are important factors affecting consumer confidence in an insurer and its competitive position in marketing products as well as critical factors considered by ceding companies in selecting a reinsurer.

Our principal insurance company subsidiaries are rated by A.M. Best, S&P, Moody’s and Fitch. Financial strength ratings represent the opinions of rating agencies regarding the financial ability of an insurer or reinsurer to meet its obligations under an insurance policy or reinsurance arrangement and generally involve quantitative and qualitative evaluations by rating agencies of a company’s financial condition and operating performance. Generally, rating agencies base their financial strength ratings upon information furnished to them by the company and upon their own investigations, studies and assumptions. Financial strength ratings are based upon factors of concern to customers, distribution partners and ceding companies and are not directed toward the protection of investors. Financial strength ratings are not recommendations to buy, sell or hold securities and may be revised or revoked at any time at the sole discretion of the rating organization.

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Item 2 | Management’s Discussion and Analysis | Liquidity and Capital Resources

As of November 3, 2022, the financial strength ratings of our principal insurance subsidiaries were as follows:

Company	A.M. Best	Fitch	Moody’s	S&P
Jackson National Life Insurance Company
Rating	A	A	A2	A
Outlook	stable	stable	negative	stable
Jackson National Life Insurance Company of New York
Rating	A	A	A2	A
Outlook	stable	stable	negative	stable
Brooke Life Insurance Company
Rating	A
Outlook	stable

In evaluating a company’s financial strength, the rating agencies evaluate a variety of factors including our strategy, market positioning and track record, mix of business, profitability, leverage and liquidity, the adequacy and soundness of our reinsurance, the quality and estimated market value of our assets, the adequacy of our surplus, our capital structure, and the experience and competence of our management.

In addition to the financial strength ratings, rating agencies use an outlook statement to indicate a short- or medium-term trend which, if continued, may lead to a rating change. A positive outlook indicates a rating may be raised and a negative outlook indicates a rating may be lowered. A stable outlook is assigned when ratings are not likely to be changed. Outlooks should not be confused with expected stability of the issuer’s financial or economic performance. A stable outlook does not preclude a rating agency from changing a rating at any time without notice.

A.M. Best, S&P, Moody’s and Fitch review their ratings of insurance companies from time to time. There can be no assurance that any particular rating will continue for any given period of time or that it will not be changed or withdrawn entirely if, in their judgment, circumstances so warrant. While the degree to which ratings adjustments will affect sales of our annuities and institutional products, and persistency is unknown, if our ratings are negatively adjusted for any reason, we believe we could experience a material decline in the sales in our individual channel, origination in our institutional channel, and the persistency of our existing business.

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Item 2 | Management’s Discussion and Analysis | Summary of Critical Accounting Estimates

Summary of Critical Accounting Estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to adopt accounting policies and make estimates and assumptions that affect amounts reported in our Condensed Consolidated Financial Statements included elsewhere in this Report. The most critical estimates include those used in determining:

•    deferred acquisition costs

•    reserves for future policy benefits and claims payable and other contract holder funds

•    income taxes and the ability to realize certain deferred tax benefits

•    accounting for reinsurance

•    valuation and impairment of investments, including estimates related to expectations of credit losses on certain financial assets

•    valuation of freestanding derivative instruments

•    valuation of embedded derivatives

•    net investment income

•    contingent liabilities

•    consolidation of variable interest entities

In applying our accounting policies, we make subjective and complex judgments that frequently require estimates about matters that are inherently uncertain. Many of these policies, estimates and related judgments are common in the insurance and financial services industries while others are specific to our business and operations. Since future events and their effects cannot be determined with precision, actual results could differ from these estimates.

The above critical accounting estimates are described in “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Critical Accounting Estimates” and Notes 1 and 2 of the Notes to the Consolidated Financial Statements included in our 2021 Annual Report.

Off–Balance Sheet Arrangements

We do not have any off–balance sheet arrangements as of September 30, 2022.

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Item 3 | Quantitative and Qualitative Disclosures about Market Risk

Item 3. Quantitative and Qualitative Disclosures about Market Risk

There have been no material changes to the quantitative and qualitative disclosures about market risk described in the section titled “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Quantitative and Qualitative Disclosures About Market Risk” previously disclosed in our 2021 Annual Report.

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

We maintain disclosure controls and procedures, which are designed to ensure that information required to be disclosed in the reports we file or submit under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms, and that such information is accumulated and communicated to the Company’s management, including our Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure. During the period covered by this Report, we, under the supervision and with the participation of our Chief Executive Officer and Chief Financial Officer, conducted an evaluation of the effectiveness of our disclosure controls and procedures (as defined in Rule 13a-15(e) of the Exchange Act).

We describe in the Company's Form 10, Note 2—Restatement of Previously Issued Financial Statements to our audited financial statements, the background to the restatement of our previously-issued audited financial statements for the year ended December 31, 2020. Our management has concluded that the restatement resulted from a material weakness in our internal control over financial reporting as of December 31, 2020. Due to this material weakness in our disclosure controls and procedures and internal control over financial reporting, our Chief Executive Officer and Chief Financial Officer concluded that the Company’s disclosure controls and procedures were not effective as of September 30, 2022.

Although the Company has taken significant steps in our remediation plan, the Company continues to implement, document, and communicate policies, procedures, and internal controls. As a result of the material weakness, our management has identified the need for stronger controls when assessing the accounting for significant and unusual transactions that involve a high degree of judgment and complexity, along with the need for additional technical U.S. GAAP accounting expertise. Our management has implemented and enhanced controls when assessing the accounting for significant and unusual transactions in the third quarter of 2021 as well as made some key hires for additional technical U.S. GAAP accounting expertise. The Company believes that these actions will remediate the material weakness. However, the material weakness will not be considered remediated until the applicable controls operate for a sufficient period of time and management has concluded, through testing, that these controls are operating effectively. We expect that the remediation of this material weakness will be completed by year-end 2022.

Changes in Internal Control Over Financial Reporting 

As described above, the Company has taken steps to remediate the material weakness in its internal control over financial reporting and is implementing additional controls to remediate the material weakness. Other than these additional controls, there was no change in our internal control over financial reporting (as defined in Rule 13a-15(f) under the Exchange Act) that occurred during the quarter ended September 30, 2022, that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

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Part II - Other Information

Item 1. Legal Proceedings.

For a discussion of legal proceedings, see Note 14 to Condensed Consolidated Financial Statements included elsewhere in this Report.

Item 1A. Risk Factors.

Below is a change to the risk factors described in Part I, Item 1A. “Risk Factors” in our 2021 Annual Report:

The paragraph labelled, “Changes in U.S. federal income or other tax laws or the interpretation of tax laws could affect sales of our products and profitability.” under “Risk Factors – Risks Relating to Legal, Tax and Regulatory Matters” is amended as follows:

Changes in U.S. federal income or other tax laws or the interpretation of tax laws could affect sales of our products and profitability, and our cash flows and statutory capital.

The annuity products that we market generally provide the customer with certain federal income tax advantages. For example, federal income taxation on any increases in non-qualified annuity contract values (i.e., the “inside build-up”) is deferred until it is received by the customer. With other savings investments, such as certificates of deposit and taxable bonds, the increase in value is generally taxed each year as it is realized. Additionally, life insurance death benefits are generally exempt from income tax.

From time to time, various tax law changes have been proposed that could have an adverse effect on our business, financial condition, results of operations and cash flows, including the elimination of all or a portion of the income tax advantages described above for annuities and life insurance. If legislation were enacted to eliminate the tax deferral for annuities, such a change would have an adverse effect on our ability to sell our annuities. Moreover, if the treatment of annuities was changed prospectively, and the tax-favored status of existing contracts was grandfathered, holders of existing contracts would be less likely to surrender or rollover their contracts, which could also adversely affect our business.

The recently enacted Inflation Reduction Act of 2022 (“IRA”) establishes a new 15 percent corporate alternative minimum tax (“AMT”) on corporations that have an average adjusted financial statement income in excess of $1 billion over a three-year period and is effective January 1, 2023. The implementation of the AMT contemplates that the U.S. Department of Treasury issues final regulatory guidance, which is expected throughout 2023. It remains difficult to predict whether the final guidance will provide further definition of adjusted financial statement income. In the absence of further guidance, we may be required to pay tax equal to 15 percent of our pre-tax financial statement income, as adjusted by the AMT, which includes certain items that are non-economic and can fluctuate significantly based on the movement of interest rates and equity markets. This may have a material adverse impact on our cash flows and statutory capital position.

124

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

Recent Sales of Unregistered Securities.

None.

Repurchase of Equity by the Company.

Period	Total Number of Shares Purchased	Average Price Paid Per Share		Total Number of Shares Purchased as Part of Publicly Announced Program (2)	Maximum Dollar Value of Shares that May Yet Be Purchased Under the Program (in millions) (2)
July 1, 2022 - July 31, 2022 (1)
Share repurchase program	—	$	—	—	$	183
Employee transactions (3)	N/A	N/A		N/A	N/A
August 1, 2022 - August 31, 2022
Share repurchase program	700,000	33.43		700,000	160
Employee transactions (3)	N/A	N/A		N/A	N/A
September 1, 2022 - September 30, 2022
Share repurchase program	500,000	31.79		500,000	144
Employee transactions (3)	549	32.03		N/A	N/A
Totals
Share repurchase program	1,200,000			1,200,000
Employee transactions (3)	549			N/A
	1,200,549			1,200,000

(1) Includes repurchases of shares under Class A Common Stock repurchase agreements with Athene.

(2) On February 28, 2022, our Board of Directors authorized an increase of $300 million to the existing share repurchase authorization. For more information on common stock repurchases, see Note 18 to Condensed Consolidated Financial Statements included elsewhere in this Report.

(3) Includes shares withheld pursuant to the terms of awards under the Company's 2021 Omnibus Incentive Plan to offset tax withholding obligations that occur upon vesting and release of shares, which are treated as share repurchases. The value of the shares withheld is the closing price of common stock of Jackson Financial Inc. on the date the relevant transaction occurs.

Item 4. Mine Safety Disclosures.

Not applicable.

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Item 5. Other Information.

Adoption of JFI Severance Plan

On November 7, 2022, the Compensation Committee (the “Committee”) of the Board of Directors (the "Board") and the Board of Jackson Financial Inc. (the “Company”) adopted the Jackson Financial Inc. Severance Plan (“Plan”) to provide severance benefits for a group of management employees, including the Company's chief executive officer (the "CEO"), its chief financial officer ("CFO") and its other named executive officers. The Plan is effective as of November 7, 2022.

As it relates to the senior leadership team, the Plan provides for a lump sum cash payment to a participant in the event that participant's termination without cause by the Company or termination by that participant for good reason. The “senior leadership team” includes the CEO, the CFO and the other named executive officers, as well as other members of management at the same job grade. The lump sums are calculated, as follows:

a.for the CEO, a two times multiple of the “severance compensation basis”; and

b.for other members of the senior leadership team, a multiple ranging from 1.0 to 1.5 of the “severance compensation basis.”

The Plan also covers other members of management. For further information on that coverage, see the Plan, which is filed as an exhibit to this Report.

The “severance compensation basis” includes a participant’s annual base salary, target annual bonus for the year in which termination occurs, target annual production-related sales compensation (if any), and the amount required for 12 months of COBRA continuation coverage.

The Plan also provides for the payment of a pro-rated annual bonus for the year in which termination occurs, and if termination occurs before a bonus for the immediately prior year is paid, an earned annual bonus for that prior year. The participant’s receipt of the lump sum cash payment, prorated annual bonus, and, if applicable, earned annual bonus is subject to conditions, including that participant's compliance with non-compete and non-solicitation provisions in the severance agreement and that participant's execution and non-revocation of an acceptable release of claims in favor of the Company. The foregoing payments are in addition to payments in respect of "accrued rights," which include: accrued but unpaid base salary, earned but unpaid special compensation for periods employed in a special compensation-eligible role, and benefits provided under the Company’s employee benefit plans upon termination of employment.

In the event of termination due to death or disability, the Plan provides for payment to the participant of the accrued rights (but not the lump sum payment), a pro-rated annual bonus for the year in which death or disability occurs and an earned bonus, if death or disability occurs before a bonus for the immediately prior year is paid. In the event of termination for cause, the Plan provides for payment of only the accrued rights (and not a lump sum cash payment, a pro-rated annual bonus, or an earned annual bonus), and the participant is ineligible to receive any other benefits in connection with such termination.

If a participant holds outstanding long-term incentive awards, those awards are treated in the manner set forth in the relevant plan document and award agreement.

The Committee may amend or terminate the Plan at any time and for any reason, subject to the requirement that six months’ prior notice be given to affected participants of any or amendment or termination that materially and adversely affects their rights.

This summary of the Plan is qualified in its entirety by reference to the Plan, which is filed as an exhibit to this Report and is incorporated herein by this reference.

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Item 6. Exhibits.

The following documents are filed as exhibits hereto:

Number	Description
10.1*†	Jackson Financial Inc. Severance Plan.
31.1*	Certification of the Chief Executive Officer pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2*	Certification of the Chief Financial Officer pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1*	Certification of the Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2*	Certification of the Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS*	Inline XBRL Instance Document – The instance document does not appear in the interactive data file because its XBRL tags are embedded within the Inline XBRL document
101.SCH*	Inline XBRL Taxonomy Extension Schema Document
101.CAL*	Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.LAB*	Inline XBRL Taxonomy Extension Label Linkbase Document
101.PRE*	Inline XBRL Taxonomy Extension Presentation Linkbase Document
101.DEF*	Inline XBRL Taxonomy Extension Definition Linkbase Document
104*	Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).

* Filed herewith.

† Identifies each management contract or compensatory plan or arrangement.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	JACKSON FINANCIAL INC.
	(Registrant)
Date: November 10, 2022	By:	/s/ Marcia Wadsten
		Marcia Wadsten
		Executive Vice President and Chief Financial Officer
		(Principal Financial Officer)

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EX-10.1

Exhibit 10.1

JACKSON FINANCIAL INC.

SEVERANCE PLAN

The Compensation Committee (the “Committee”) of the Board of Directors (the “Board”) of Jackson Financial Inc. (the “Company”) has adopted this Severance Plan (the “Plan”), effective as of November 7, 2022. Capitalized terms not otherwise defined in the Plan shall have the meanings set forth in Exhibit A attached hereto. The Plan is intended to qualify as a “top hat” welfare benefit plan that is exempt from Parts 2, 3 and 4 of Title I of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”) because it is maintained primarily for the purpose of providing severance benefits for a select group of management employees.

1.Participation. Employees employed by any member of the Company Group at a job grade of X2 or above shall participate in the Plan (collectively, the “Participants”).

2.    Administration. The Plan shall be administered by the Committee, which shall have authority, subject to the express provisions of the Plan, to interpret the Plan and make all other determinations necessary or advisable for the administration of the Plan. All decisions, interpretations and other actions of the Committee shall be final, conclusive, and binding on all parties. Notwithstanding the foregoing, the Committee may delegate, subject to such terms or conditions or guidelines as it shall determine, to any officer or group of officers, or to any employee or group of employees, any portion of its authority and powers under the Plan with respect to Participants who are not Section 16 officers; provided that any delegation to one or more officers or employees of the Company shall be subject to and comply with the applicable provisions of the Delaware General Corporation Law (or successor provision).

3.    Termination and Amendment of Plan. The Committee may amend or terminate the Plan at any time and for any reason, provided that (i) six months’ prior notice to affected Participants will be required for any termination or amendment of the Plan that materially and adversely affects the rights of such Participants, and (ii) no termination or amendment of the Plan will materially and adversely affect the rights of any Participant whose employment is terminated prior to the effective date of such amendment or termination of the Plan.

4.        Termination without Cause or for Good Reason. Upon a Participant’s termination of employment by the Company without Cause or by the Participant for Good Reason, the Participant shall be entitled to receive the Accrued Rights. In addition, and subject to the terms and conditions of Section 7, the Participant shall be eligible to receive the benefits set forth below.

    (a)    Lump Sum Cash Severance Payment. The Company shall make a single Lump Sum Cash Severance Payment to the Participant as set forth below.

(i)Senior Leadership Team. If the Participant is a member of the Senior Leadership Team at the time of his or her employment termination, then the amount of the Participant’s Lump Sum Cash Severance Payment shall be determined in accordance with the formula set forth in Exhibit D attached hereto. “Senior Leadership Team” for purposes of this Section 4(a)(i) includes those Participants who are employed by a member of the Company Group at a job grade of X4 or X3.

(ii)Leadership Team. If the Participant is a member of the Leadership Team at the time of his or her employment termination, then the amount of the Participant’s Lump Sum Cash Severance Payment shall be determined in accordance with the formula set forth in Exhibit E attached hereto. Leadership Team for purposes of this Section 4(a)(ii) includes those Participants who are employed by a member of the Company Group at a job grade of X2.

    (b)    Prorated Annual Bonus. The Company shall make a cash payment to the Participant equal to a prorated portion of the Participant’s actual annual bonus for the year of employment termination (a “Prorated Annual Bonus”), the amount of which shall be determined based solely on the results of Company key performance indicators (“KPIs”), as determined by the Company. The Prorated Annual Bonus will be equal to the actual annual bonus that the Participant would have earned (based solely on Company KPI performance outcomes under the bonus program) for such year had he or she remained employed with the Company, multiplied by a fraction, the numerator of which is the number of days that the Participant worked during the year, and the denominator of which is the total number of days in the year. Subject to the terms and conditions of Section 7, the Prorated Annual Bonus shall be paid to the Participant at the same time that annual bonuses are paid to all other eligible associates for the relevant year and in no event later than March 15 of the calendar year following the calendar year in which the Participant’s employment termination occurred.

(c)    Earned Annual Bonus. If a Participant terminates employment (i) after the completion of a performance year to which an annual bonus payment relates (a “Bonus Performance Year”) and (ii) before that annual bonus payment has been made, the Participant shall receive the annual bonus payment for the Bonus

1

Exhibit 10.1

Performance Year (an “Earned Annual Bonus”). The amount of an Earned Annual Bonus paid to the Participant shall be determined based on Company KPI performance outcomes under the bonus program, as determined by the Company. An Earned Annual Bonus shall be in addition to any Prorated Annual Bonus that is paid to the Participant for service during the year of employment termination pursuant to Section 4(b). Subject to the terms and conditions of Section 7, the Earned Annual Bonus shall be paid to the Participant at the same time that annual bonuses are paid to all other eligible associates for the relevant year and in no event later than March 15 of the calendar year following the calendar year in which the Participant’s employment termination occurs.

(d)    Long-Term Incentive Awards. The Participant’s outstanding long-term incentive awards shall be treated in the manner set forth in the relevant plan document and the award agreements issued thereunder, as applicable.

5.        Termination by Death or Disability.

(a)    Death. If a Participant’s employment terminates due to death, the Participant’s estate shall be entitled to receive the Accrued Rights and a prorated portion of the Participant’s target annual bonus for the year in which the death occurs. The prorated target annual bonus will be equal to the Participant’s target annual bonus for the year of employment termination, multiplied by a fraction, the numerator of which is the number of days that the Participant worked during the year, and the denominator of which is the total number of days in the year. Further, if the Participant’s death occurs after completion of a Bonus Performance Year for which the associated Earned Annual Bonus has not yet been paid, the Participant’s estate will also receive the Earned Annual Bonus due for the Participant’s service during the Bonus Performance Year. Any such payments due under this Section 5(a) shall be paid within 30 days following the date of death. The Participant’s estate shall not be eligible to receive any other benefits under this Plan in connection with such termination, and any outstanding long-term incentive awards as of the date of death shall be treated in the manner set forth in the relevant plan document and the award agreements issued thereunder, as applicable.

(b)    Disability. If a Participant’s employment terminates due to Disability, the Participant shall be entitled to receive the Accrued Rights and a Prorated Annual Bonus as determined under Section 4(b) for the year in which the termination occurs. Further, if the Participant’s employment termination due to Disability occurs after completion of a Bonus Performance Year for which the associated Earned Annual Bonus has not yet been paid, the Participant will also receive the Earned Annual Bonus due for the Participant’s service during the Bonus Performance Year. Any Prorated Annual Bonus for the year in which the Participant’s employment termination occurs and/or Earned Annual Bonus that is due under this Section 5(b) shall be paid to the Participant at the same time that the applicable bonus is paid to all other eligible associates for the relevant year and in no event later than March 15 of the calendar year following the calendar year in which the Participant’s employment termination occurred. The Participant shall not be eligible to receive any other benefits under this Plan in connection with such termination, and any outstanding long-term incentive awards as of the date of termination due to Disability shall be treated in the manner set forth in the relevant plan document and the award agreements issued thereunder, as applicable.

6.    Termination for Cause. If a Participant’s employment is terminated by the Company for Cause, the Participant shall be entitled to receive the Accrued Rights. The Participant’s outstanding long-term incentive awards shall be treated in the manner set forth in the relevant plan document and the award agreements issued thereunder, as applicable. The Participant shall not be eligible to receive any other benefits in connection with such termination.

7.        Conditions to Severance. Notwithstanding any provision herein to the contrary, the payment of any amount or provision of any benefit pursuant to Section 4 of the Plan (other than the Accrued Rights) (collectively, the “Severance Benefits”) to a Participant shall be conditioned upon (i) the Participant’s compliance with non-compete and non-solicitation provisions as set forth in a separation agreement in favor of the Company and (ii) the Participant’s execution, delivery to the Company and non-revocation of a release of claims in a form acceptable to the Company (the “Release Agreement”) (and the expiration of any revocation period contained in such Release Agreement) within the time period specified in the Release Agreement. If the Participant fails to execute the Release Agreement in such a timely manner as specified in the Release Agreement, or timely revokes his or her acceptance of such release following its execution, the Participant shall not be entitled to any of the Severance Benefits. The Company shall pay the Lump Sum Cash Severance Payment pursuant to Section 4(a) within 30 days following the effective date of the Release Agreement as defined in that Agreement, or if earlier, by March 15 of the calendar year following the calendar year in which the Participant’s employment termination occurred; provided, however, that, if the Release Agreement could become effective and non-revocable in the calendar year following the calendar year in which Participant’s termination of employment occurs, then, to the extent that any of the Severance Benefits constitutes “nonqualified deferred compensation” for purposes of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), such Severance Benefits shall be paid no earlier than the first January 1 following the Participant’s employment termination date. The Company shall pay the Prorated Annual Bonus, the Earned Annual Bonus, and any Long-Term Incentive Awards at the time specified in Sections 4(b), (c), and (d), respectively.

2

Exhibit 10.1

8.    Other Severance Benefits/Previous Plans. Participants shall not be entitled to receive any severance payments or benefits from the Company or any of its Affiliates upon a termination of employment, except as set forth in the Plan or as may be approved by the Committee or its designee. This Plan supersedes any and all prior severance plans or arrangements to which any Participant is subject.

9.        Dispute Resolution/Attorneys’ Fees. All disputes, controversies, or claims between the parties arising out of or relating to the Plan shall be resolved by binding arbitration. All information exchanged between the parties, and with the arbitrator, during any arbitration, shall be considered confidential. Except as specified herein, all arbitrated claims shall be governed by the Employment Arbitration Rules of the American Arbitration Association ("AAA"). The parties agree that an award rendered by the arbitrator shall be final and binding on all parties in the proceeding.  Except as provided below in this Section, the parties stipulate that the provisions of this Section shall be a complete defense to any proceeding instituted in any federal, state, or local court or before any administrative tribunal with respect to any dispute, controversy, or claim arising out of or relating to the Plan. The arbitrator has the right to award or include in any award such relief which the arbitrator deems proper in the circumstances, including, without limitation, money damages, specific performance, and injunctive relief. The award and decision of the arbitrator will be conclusive and binding upon all of the parties, and judgment upon the award may be entered in any court of competent jurisdiction under seal. Each party reserves the right, exercisable only where such party reasonably believes the circumstances justify immediate relief (e.g., a breach of confidentiality or a misappropriation of confidential information), to obtain temporary restraining orders and temporary, preliminary, or permanent injunctive relief from a court of competent jurisdiction.  The arbitrator shall limit any production based on considerations of proportionality, unreasonable expense, duplication, and undue burden. Unless the parties otherwise agree, the arbitration proceedings shall take place in Michigan at a location designated by the arbitrator. The parties shall equally bear the cost of arbitration fees and expenses, and each party will be responsible for their own attorneys’ fees and costs.

10.        Successors. This Plan shall inure to the benefit of and shall be binding upon the Company and its successors and assigns. Any successor (whether direct or indirect and whether by purchase, lease, merger, consolidation, liquidation or otherwise) to all or substantially all of the Company’s business and/or assets shall assume and agree to perform the obligations of the Company under this Plan. The Plan shall inure to the benefit of and be enforceable by each Participant’s personal or legal representatives, executors, administrators, successors, heirs, distributees, devisees, legatees or other beneficiaries. If a Participant shall die while any amount remains payable to such Participant hereunder, all such amounts shall be paid to the executors, personal representatives or administrators of such Participant’s estate.

11.        No Right to Continued Service. Nothing contained in the Plan shall (i) confer upon any Participant any right to continue as an employee of the Company, (ii) constitute any contract of employment or agreement to continue employment for any particular period, or (iii) interfere in any way with the right of the Company to terminate a service relationship with any Participant, with or without Cause.

12.        No Duty to Mitigate. A Participant shall not be required to mitigate the amount of any payment or benefit provided pursuant to the Plan, nor shall the amount of any such payment or benefits be reduced by any compensation that the Participant receives from any other source.

13.        Withholding/Section 280G and 409A Matters. The Company shall have the authority and right to withhold an amount sufficient to satisfy federal, state, local and foreign taxes required by law to be withheld with respect to any payments or benefits under the Plan. The provisions with respect to Sections 280G and 409A of the Code on Exhibit B attached hereto are incorporated into the Plan as if fully set forth herein.

14.        Claims for Benefits. Any claim for benefits under this Plan shall be subject to the claims procedures contained in Exhibit C attached hereto.

15.        Unfunded Plan. The Plan is intended to be an “unfunded” plan for severance benefits. Nothing contained in the Plan shall give a Participant any rights that are greater than those of a general unsecured creditor.

16.        No Assignment. Each Participant’s rights under the Plan may not be assigned or transferred in whole or in part, except as set forth in Section 10.

17.        Governing Law. To the extent not preempted by federal law, the Plan shall be construed and interpreted in accordance with the laws of the State of Michigan without reference to the conflict of laws provisions thereof, to the extent not preempted by federal law, which shall otherwise control.

3

Exhibit 10.1

EXHIBIT A

CERTAIN DEFINITIONS

    (a)    “Accrued Rights” means (i) all accrued but unpaid base salary through the date of termination of the Participant’s employment, (ii) all earned but unpaid special compensation for the dates on which the Participant was actively employed in a special compensation-eligible role, in accordance with standard Company procedures, (iii) any unpaid or unreimbursed expenses incurred by the Participant in accordance with Company policy, and (iii) any benefits provided under the Company Group’s employee benefit plans upon a termination of employment, in accordance with the terms contained therein.

    (b)    “Affiliate” means any Person that directly or indirectly controls, is controlled by or is under common control with the Company. The term “control” (including, with correlative meaning, the terms “controlled by” and “under common control with”), as applied to any Person, means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of such Person, whether through the ownership of voting or other securities, by contract or otherwise.

    (c)    “Cause” shall mean any of the following: (a) the Participant’s commission of a crime involving fraud, theft, false statements or other similar acts or commission of any crime that is a felony (or comparable classification in a jurisdiction that does not use these terms); (b) the Participant’s engaging in any conduct that constitutes an employment disqualification under applicable law with respect to a material portion of the Participant’s work duties; (c) the Participant’s willful or grossly negligent failure to perform his or her material employment-related duties for the Company or a Subsidiary, or willful misconduct in the performance of such duties; (d) the Participant’s material violation of any Company or Subsidiary policy as in effect from time to time; (e) the Participant’s engaging in any act or making any public statement that materially impairs, impugns, denigrates, disparages or negatively reflects upon the name, reputation or business interests of the Company or its Subsidiaries; (f) the Participant’s failure to return to a partial or full-time in-office working environment, as required by the Company, following a remote work arrangement that was temporary in nature; or (g) the Participant’s breach of any award agreement, employment agreement, or noncompetition, nondisclosure or non-solicitation agreement to which the Participant is a party or by which the Participant is bound; provided that in the case of any Participant who, as of the date of determination, is a party to an effective services, severance, consulting or employment agreement with the Company or any Subsidiary of the Company that employs such individual, “Cause” shall have the meaning, if any, specified in such agreement. A termination for Cause shall be deemed to include a determination by the Committee following a Participant’s termination of employment that circumstances existing prior to such termination would have entitled the Company or one of its Subsidiaries to have terminated such Participant’s employment for Cause. All rights a Participant has or may have under the Plan shall be suspended automatically during the pendency of any investigation by the Committee or its designee, or during any negotiations between the Committee or its designee and the Participant, regarding any actual or alleged act or omission by the Participant of the type described in the applicable definition of Cause.

    (d)    “Company Group” means, collectively, the Company and its Subsidiaries.

    (e)    “Disability” means a “disability” as approved by the Company’s long-term disability insurance carrier; provided, that in the case of any amount paid under this Plan that is subject to Section 409A of the Code, Disability shall have the meaning set forth in Section 409A of the Code.

    (f) “Good Reason” means:

(i)in the case of any Participant who, as of the date of determination is party to an effective services, severance, consulting or employment agreement with the Company or any Subsidiary of the Company that employs such individual that defines “Good Reason,” the meaning specified in such agreement; or

(ii)if no such agreement exists or if such agreement does not define “Good Reason,” the occurrence of one or more of the following without the Participant’s express written consent, which circumstances are not remedied by the Company within thirty (30) days of its receipt of a written notice from the Participant describing the applicable circumstances (which notice must be provided by the Participant within ninety (90) days of the Participant’s knowledge of the applicable circumstances): (i) a material reduction in the Participant’s base salary; (ii) a material reduction in the Participant’s target annual total cash compensation, which is comprised of base salary, target annual bonus opportunity, and target annual production-related sales compensation (if applicable); or (iii) a geographical relocation of the Participant’s principal office location by more than fifty (50) miles. For the avoidance of doubt, to the extent the Company requires a Participant to return to a partial or full-time in-office working environment following a remote work arrangement that was temporary in nature, such required return to office shall not constitute Good Reason. In order for a termination of employment for Good Reason

4

Exhibit 10.1

to be effective, the Participant must terminate his or her employment within 30 days following the expiration of the cure period set forth in this Section (f).

    (g)    “Person” means any individual, corporation, association or other business entity.

    (i)    “Subsidiary” means, with respect to any specified Person: (i) any corporation, association or other business entity of which more than 50% of the total voting power of shares of such entity’s voting securities (without regard to the occurrence of any contingency and after giving effect to any voting agreement or stockholders’ agreement that effectively transfers voting power) is at the time owned or controlled, directly or indirectly, by that Person or one or more of the other Subsidiaries of that Person (or a combination thereof); and (ii) any partnership, limited liability company or any comparable foreign entity (A) the sole general partner (or functional equivalent thereof) or the managing general partner (or functional equivalent thereof) of which is such Person or Subsidiary of such Person or (B) the only general partners (or functional equivalents thereof) of which are that Person or one or more Subsidiaries of that Person (or any combination thereof).

5

Exhibit 10.1

EXHIBIT B

SECTION 280G AND 409A PROVISIONS

1.        Section 280G. In the event that any payment or benefit received or to be received by a Participant pursuant to the Plan or otherwise (“Payments”) would (i) constitute a “parachute payment” within the meaning of Section 280G of the Code and (ii) but for this section, be subject to the excise tax imposed by Section 4999 of the Code, any successor provisions, or any comparable federal, state, local or foreign excise tax (“Excise Tax”), then, subject to the provisions of this Section 1, such Payments shall be either (x) provided in full pursuant to the terms of the Plan or any other applicable agreement, or (y) provided as to such lesser extent which would result in no portion of such Payments being subject to the Excise Tax (“Reduced Amount”), whichever of the foregoing amounts, taking into account the applicable federal, state, local and foreign income, employment and other taxes and the Excise Tax (including, without limitation, any interest or penalties on such taxes), results in the receipt by the Participant, on an after-tax basis, of the greatest amount of payments and benefits provided for hereunder or otherwise, notwithstanding that all or some portion of such Payments may be subject to the Excise Tax. Unless the Company and the Participant otherwise agree in writing, any determination required under this Plan shall be made by an independent advisor designated by the Company and reasonably acceptable to the Participant (the “Independent Advisor”), whose determination shall be conclusive and binding upon the Participant and the Company for all purposes. For purposes of making the calculations required under this Plan, the Independent Advisor may make reasonable assumptions and approximations concerning applicable taxes and may rely on reasonable, good faith interpretations concerning the application of Sections 280G and 4999 of the Code; provided that the Independent Advisor shall assume that the Participant pays all taxes at the highest marginal rate. The Company and the Participant shall furnish to the Independent Advisor such information and documents as the Independent Advisor may reasonably request in order to make a determination under this Section 1. The Company shall bear all costs that the Independent Advisor may incur in connection with any calculations contemplated by this Plan. The reduction of the Payments payable hereunder, if applicable, shall be made by first reducing the cash payments under Section 4(a), and second by reducing any other Payments in a manner determined by the Company, in consultation with the Participant.

2.        Section 409A.

    (a)    General. The Company intends that the payments and benefits provided under the Plan shall either be exempt from the application of, or comply with, the requirements of Section 409A of the Code, and the Plan shall be construed in a manner that effectuates this intent. Neither the Company nor its respective directors, officers, employees or advisers (other than in his or her capacity as a Participant) shall be held liable for any taxes, interest, penalties or other monetary amounts owed by any Participant or other taxpayer as a result of the Plan. Notwithstanding anything in the Plan to the contrary, the Committee may amend the Plan, to take effect retroactively or otherwise, as deemed necessary or advisable for the purpose of remaining exempt from or complying with the requirements of Section 409A of the Code and the administrative regulations and rulings promulgated thereunder. Each payment in a series of payments under the Plan shall be deemed to be a separate payment for purposes of Section 409A of the Code.

    (b)    Definitional Restrictions. Notwithstanding anything in the Plan to the contrary, to the extent that any amount or benefit that would constitute non-exempt “deferred compensation” for purposes of Section 409A of the Code (“Non-Exempt Deferred Compensation”) would otherwise be payable or distributable under the Plan by reason of the occurrence of a Participant’s separation from service, such Non-Exempt Deferred Compensation will not be payable or distributable to the Participant by reason of such circumstance unless the circumstances giving rise to such separation constitute a “separation from service” under Section 409A of the Code and the applicable regulations.

    (c)    Six-Month Delay in Certain Circumstances. In the event that, notwithstanding the clear language of the Plan and the intent of the Company, any amount or benefit under this Plan constitutes Non-Exempt Deferred Compensation and is payable or distributable by reason of a Participant’s separation from service during a period in which the Participant qualifies as a “specified employee” (as defined in Section 409A of the Code and the final regulations thereunder), then, subject to any permissible acceleration of payment under Section 409A of the Code:

    (i)    the amount of such Non-Exempt Deferred Compensation that would otherwise be payable during the six-month period immediately following the Participant’s separation from service under the terms of this Plan will be accumulated through and paid or provided on the first day of the seventh month following the Participant’s separation from service (or, if the Participant dies during such period, within 30 days after the Participant’s death) (in either case, the “Required Delay Period”); and

    (ii)     the normal payment or distribution schedule for any remaining payments or distributions will resume at the end of the Required Delay Period.

6

Exhibit 10.1

    (d)    Expense Reimbursements. To the extent that any right to reimbursement of expenses or payment of any benefit in-kind under the Plan constitutes Non-Exempt Deferred Compensation, (i) any such expense reimbursement shall be made by the Company no later than the last day of the taxable year following the taxable year in which such expense was incurred by the Participant, (ii) the right to reimbursement or in-kind benefits shall not be subject to liquidation or exchange for another benefit, and (iii) the amount of expenses eligible for reimbursement or in-kind benefits provided during any taxable year shall not affect the expenses eligible for reimbursement or in-kind benefits to be provided in any other taxable year.

7

Exhibit 10.1

EXHIBIT C

CLAIMS PROCEDURES

1.Initial Claims. A Participant who believes that such Participant is entitled to a payment under this Plan that has not been received may submit a written claim for benefits under this Plan within sixty (60) days after the Participant’s termination date. If the Participant’s claim is denied, in whole or in part, such Participant will be furnished with written notice of the denial within ninety (90) days after the Committee’s or its designee’s receipt of the Participant’s written claim, unless special circumstances require an extension of time for processing the claim, in which case, the decision period may be extended by up to an additional ninety (90) days. If such an extension of time is necessary, written notice of the extension will be furnished to the Participant before the termination of the initial ninety (90)-day period and will describe the circumstances requiring the extension and the date by which a decision is expected to be rendered. Written notice of the denial of the Participant’s claim will contain the following information:

a.the reason or reasons for the denial of the Participant’s claim;

b.references to the Plan provisions on which the denial of the Participant’s claim was based;

c.a description of any additional information or material required by the Committee to reconsider the Participant’s claim (to the extent applicable) and an explanation of why such material or information is necessary; and

d.a description of this Plan’s review procedures and time limits applicable to such procedures, including a statement of the Participant’s right to bring a civil action under Section 502(a) of ERISA following a benefit claim denial on review.

2.Appeal of Denied Claims. If the Participant’s claim is denied, the Participant (or the Participant’s authorized representative) may file a request for review of the claim in writing with the Committee or its designee. This request for review must be filed no later than sixty (60) days after the Participant has received written notification of the denial.

a.Such request for review may include any comments, documents, records and other information relating to the Participant’s claim for benefits.

b.The Participant has the right to be provided with, upon request and free of charge, reasonable access to and copies of all pertinent documents, records and other information that is relevant to the Participant’s claim for benefits.

c.The review of the denied claim will take into account all comments, documents, records and other information that the Participant submitted relating to the Participant’s claim, without regard to whether such information was submitted or considered in the initial denial of the Participant’s claim.

3.Committee’s Response to Appeal. The Committee or its designee will notify the Participant of its decision within sixty (60) days after the Committee’s or the designee’s receipt of the Participant’s written claim for review; provided that the Committee or its designee may extend the review period by up to sixty (60) additional days, if the Committee or its designee, as applicable, notifies the Participant in writing of the need for an extension (and the reason therefor) before the end of the initial sixty (60)-day period. If the Committee or its designee makes an adverse decision on appeal, the Committee or its designee, as applicable, shall communicate its decision in a writing that includes:

a.the reason or reasons for the denial of the Participant’s appeal;

b.reference to the Plan provisions on which the denial of the Participant’s appeal is based;

c.a statement that the Participant is entitled to receive, upon request and free of charge, reasonable access to, and copies of, this Plan and all documents, records and other information relevant to the Participant’s claim for benefits; and

d.a statement describing the Participant’s right to bring an action under Section 502(a) of ERISA.

4.Exhaustion of Administrative Remedies. The exhaustion of these claims procedures is mandatory for resolving every claim and dispute arising under this Plan. As to such claims and disputes:

8

Exhibit 10.1

a.no claimant shall be permitted to commence any arbitration or legal action to recover benefits or to enforce or clarify rights under this Plan or under any provision of law until these claim procedures have been exhausted in their entirety;

b.failure to submit a claim, appeal or any required information by the applicable deadline under these claims procedures shall result in forfeiture of the benefits being claimed;

c.in any civil action, arbitration or other agreed upon dispute resolution procedure, all explicit and implicit determinations by the Committee or by its designee (including, but not limited to, interpretation of disputed plan terms, factual findings, and determinations as to whether the claim, or a request for a review of a denied claim, was timely filed) shall be afforded the maximum deference permitted by law and shall be overturned only if deemed unreasonable, arbitrary or capricious; and

d.no legal action or arbitration may be commenced by the Participant later than one hundred eighty (180) days subsequent to the date of the written response of the Committee Plan to a Participant’s request for review pursuant to Section 3 above.

9

Exhibit 10.1

EXHIBIT D

SENIOR LEADERSHIP TEAM

SEVERANCE COMPENSATION BASIS FORMULA

The amount of the Lump Sum Cash Severance Payment under Section 4(a) for a Participant who is a member of the Senior Leadership Team at the time of his or her employment termination shall be determined as set forth below.

1.The Company shall make a Lump Sum Cash Severance Payment to the Participant that is equal to the product of the severance multiple set forth in the table below and the Participant’s Severance Compensation Basis.

Grade Level	Severance Multiple
CEO	2.0
X4 and X3 Executive Committee members	1.5
X3 non-Executive Committee members	1.0

2.The Participant’s “Severance Compensation Basis” is equal to the sum of:

(a)the Participant’s annual base salary in effect immediately prior to employment termination,

(b)the Participant’s target annual bonus for the year of the Participant’s termination,

(c)the Participant’s target annual production-related sales compensation, or “Special Compensation”, for the year of the Participant’s termination, if any, and

(d)the amount that the Participant would be required to pay for COBRA continuation coverage for twelve (12) months after the employment termination date for the Participant and the Participant’s eligible dependents under the Company’s group benefit plan in which the Participant and such dependents were participating as of the termination date.

10

Exhibit 10.1

EXHIBIT E

LEADERSHIP TEAM

SEVERANCE COMPENSATION BASIS FORMULA

The amount of the Lump Sum Cash Severance Payment under Section 4(a) for a Participant who is a member of the Leadership Team at the time of his or her employment termination shall be determined as set forth below.

1.The Company shall make a Lump Sum Cash Severance Payment to the Participant that is equal to the product of:

(a)the Participant’s Severance Compensation Basis, and

(b)the greater of:

(i)the severance multiple set forth in the table below, or

(ii)an alternate severance multiple determined by multiplying completed years of service by two and dividing by 52, with such alternate severance multiple not to exceed 1.0.

Grade Level	Severance Multiple
X2	0.75

2.The Participant’s “Severance Compensation Basis” is equal to the sum of:

(a)the Participant’s annual base salary in effect immediately prior to employment termination,

(b)the Participant’s target annual bonus for the year of the Participant’s termination,

(c)the Participant’s target annual production-related sales compensation, or “Special Compensation”, for the year of the Participant’s termination, if any, and

(d)the amount that the Participant would be required to pay for COBRA continuation coverage for twelve (12) months after the employment termination date for the Participant and the Participant’s eligible dependents under the Company’s group benefit plan in which the Participant and such dependents were participating as of the termination date.

11

EX-31.1

Exhibit 31.1

CERTIFICATIONS

I, Laura L. Prieskorn, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Jackson Financial Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; and

(b) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(c) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: November 10, 2022

/s/ Laura L. Prieskorn

Laura L. Prieskorn

President and

Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATIONS

I, Marcia L. Wadsten, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Jackson Financial Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; and statements for external purposes in accordance with generally accepted accounting principles;

(b) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(c) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: November 10, 2022

/s/ Marcia Wadsten

Marcia Wadsten

Executive Vice President and

Chief Financial Officer

EX-32.1

Exhibit 32.1

Certification pursuant to 18 U.S.C. Section 1350 by the

Chief Executive Officer, as Adopted Pursuant to Section 906 of the

Sarbanes-Oxley Act of 2002

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (subsections (a) and (b) of Section 1350, Chapter 63 of Title 18, United States Code), the undersigned officer of Jackson Financial Inc. (the “Company”), does hereby certify, to such officer’s knowledge, that the Quarterly Report on Form 10-Q for the quarter ended September 30, 2022 of the Company fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended, and information contained in the Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: November 10, 2022

/s/ Laura L. Prieskorn

Laura L. Prieskorn

President and Chief Executive Officer

EX-32.2

Exhibit 32.2

Certification pursuant to 18 U.S.C. Section 1350 by the

Chief Financial Officer, as Adopted Pursuant to Section 906 of the

Sarbanes-Oxley Act of 2002

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (subsections (a) and (b) of Section 1350, Chapter 63 of Title 18, United States Code), the undersigned officer of Jackson Financial Inc. (the “Company”), does hereby certify, to such officer’s knowledge, that the Quarterly Report on Form 10-Q for the quarter ended September 30, 2022 of the Company fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended, and information contained in the Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: November 10, 2022

/s/ Marcia Wadsten

Marcia Wadsten

Executive Vice President and

Chief Financial Officer

XML

Cover - shares	9 Months Ended
	Sep. 30, 2022	Nov. 03, 2022
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2022
Document Transition Report	false
Entity File Number	001-40274
Entity Registrant Name	Jackson Financial Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	98-0486152
Entity Address, Address Line One	1 Corporate Way
Entity Address, City or Town	Lansing
Entity Address, State or Province	MI
Entity Address, Postal Zip Code	48951
City Area Code	517
Local Phone Number	381-5500
Title of 12(b) Security	Common Stock, Par Value $0.01 Per Share
Trading Symbol	JXN
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		83,036,974
Amendment Flag	false
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2022
Current Fiscal Year End Date	--12-31
Entity Central Index Key	0001822993

XML

Condensed Consolidated Balance Sheets - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
Investments:
Debt Securities, available-for-sale, net of allowance for credit losses of $31 and $9 at September 30, 2022 and December 31, 2021, respectively (amortized cost: 2022 $48,868; 2021 $49,378)	$ 41,681	$ 51,547
Debt Securities, at fair value under fair value option	2,124	1,711
Debt Securities, trading, at fair value	102	117
Equity securities, at fair value	234	279
Mortgage loans, net of allowance for credit losses of $79 and $94 at September 30, 2022 and December 31, 2021, respectively	11,223	11,482
Mortgage loans, at fair value under fair value option	508	0
Policy loans (including $3,487 and $3,467 at fair value under the fair value option at September 30, 2022 and December 31, 2021, respectively)	4,446	4,475
Freestanding derivative instruments	1,950	1,417
Other invested assets	3,622	3,199
Total investments	65,890	74,227
Cash and cash equivalents	5,331	2,623
Accrued investment income	509	503
Deferred acquisition costs	12,797	14,249
Reinsurance recoverable, net of allowance for credit losses of $10 and $12 at September 30, 2022 and December 31, 2021, respectively	30,796	33,126
Deferred income taxes, net	759	954
Other assets	1,846	928
Separate account assets	185,042	248,949
Total assets	302,970	375,559
Liabilities
Reserves for future policy benefits and claims payable	16,130	18,667
Other contract holder funds	58,174	58,726
Funds withheld payable under reinsurance treaties (including $3,646 and $3,639 at fair value under the fair value option at September 30, 2022 and December 31, 2021, respectively)	23,900	29,007
Long-term debt	2,634	2,649
Repurchase agreements and securities lending payable	27	1,589
Collateral payable for derivative instruments	1,038	913
Freestanding derivative instruments	2,225	41
Notes issued by consolidated variable interest entities, at fair value under fair value option (Note 4)	1,745	1,404
Other liabilities	2,352	2,540
Separate account liabilities	185,042	248,949
Total liabilities	293,267	364,485
Commitments, Contingencies, and Guarantees (Note 14)
Equity
Common stock, (i) Class A Common Stock 900,000,000 shares authorized, $0.01 par value per share and 83,666,942 and 88,046,833 shares issued and outstanding at September 30, 2022 and December 31, 2021, respectively and (ii) No authorized Class B Common Stock at September 30, 2022 and 100,000,000 shares authorized, $0.01 par value per share and 638,861 shares issued and outstanding at December 31, 2021 (See Note 18)	1	1
Additional paid-in capital	6,036	6,051
Treasury stock, at cost; 10,807,076 and 5,778,649 shares at September 30, 2022 and December 31, 2021, respectively	(410)	(211)
Accumulated other comprehensive income (loss), net of tax expense (benefit) of $(1,235) and $194 at September 30, 2022 and December 31, 2021, respectively	(5,718)	1,744
Retained earnings	9,065	2,809
Total shareholders' equity	8,974	10,394
Noncontrolling interests	729	680
Total equity	9,703	11,074
Total liabilities and equity	$ 302,970	$ 375,559

XML

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
Debt securities, available for sale, allowance for credit losses	$ 31	$ 9
Debt securities, available for sale, amortized cost	48,868	49,378
Mortgage loans, allowance for credit loss	79	94
Policy loans, fair value under fair value option	3,487	3,467
Reinsurance recoverable, allowance for credit losses	10	12
Funds withheld payable under reinsurance treaties, fair value under fair value option	$ 3,646	$ 3,639
Common stock, par value (in usd per share)	$ 0.01
Common stock, outstanding (in shares)	83,666,942	88,685,694
Treasury stock (in shares)	10,807,076	5,778,649
Accumulated other comprehensive income, tax expense (benefit)	$ (1,235)	$ 194
Class A common stock
Common stock, authorized (in shares)	900,000,000	900,000,000
Common stock, par value (in usd per share)	$ 0.01	$ 0.01
Common stock, issued (in shares)	83,666,942	88,046,833
Common stock, outstanding (in shares)	83,666,942	88,046,833
Class B common stock
Common stock, authorized (in shares)	0	100,000,000
Common stock, par value (in usd per share)		$ 0.01
Common stock, issued (in shares)		638,861
Common stock, outstanding (in shares)		638,861

XML

Condensed Consolidated Income Statements - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Revenues
Fee income	$ 1,908	$ 2,063	$ 5,854	$ 5,963
Premiums	36	37	105	115
Net investment income	640	837	2,022	2,568
Net gains (losses) on derivatives and investments	1,419	(1,379)	6,891	(1,194)
Other income	19	17	60	70
Total revenues	4,022	1,575	14,932	7,522
Benefits and Expenses
Death, other policy benefits and change in policy reserves, net of deferrals	586	405	2,090	933
Interest credited on other contract holder funds, net of deferrals and amortization	224	209	628	630
Interest expense	29	6	73	19
Operating costs and other expenses, net of deferrals	592	699	1,801	2,090
Amortization of deferred acquisition costs	564	4	2,276	551
Total benefits and expenses	1,995	1,323	6,868	4,223
Pretax income (loss)	2,027	252	8,064	3,299
Income tax expense (benefit)	559	(16)	1,606	515
Net income (loss)	1,468	268	6,458	2,784
Less: Net income (loss) attributable to noncontrolling interests	(11)	62	51	186
Net income (loss) attributable to Jackson Financial Inc.	$ 1,479	$ 206	$ 6,407	$ 2,598
Earnings per share
Basic (in usd per share)	$ 17.38	$ 2.18	$ 74.39	$ 27.50
Diluted (in usd per share)	$ 16.83	$ 2.18	$ 71.73	$ 27.50

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Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ 1,468	$ 268	$ 6,458	$ 2,784
Other comprehensive income (loss), net of tax:
Securities with no credit impairment net of tax expense (benefit) of: $(323) and $(95), for the three months ended September 30, 2022 and 2021, respectively, and $(1,431) and $(492), for the nine months ended September 30, 2022 and 2021, respectively	(1,978)	(345)	(7,466)	(1,778)
Securities with credit impairment, net of tax expense (benefit) of: $(5) and nil for the three months ended September 30, 2022 and 2021, respectively, and $1 and $1, for the nine months ended September 30, 2022 and 2021, respectively	(18)	0	4	2
Total other comprehensive income (loss)	(1,996)	(345)	(7,462)	(1,776)
Comprehensive income (loss)	(528)	(77)	(1,004)	1,008
Less: Comprehensive income (loss) attributable to noncontrolling interests	(11)	62	51	186
Comprehensive income (loss) attributable to Jackson Financial Inc.	$ (517)	$ (139)	$ (1,055)	$ 822

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Condensed Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Statement of Comprehensive Income [Abstract]
Change in net unrealized gains (losses) on securities not impaired, tax expense (benefit)	$ (323)	$ (95)	$ (1,431)	$ (492)
Change in unrealized gains (losses) on securities for which an allowance for credit losses has been recorded, tax expense (benefit)	$ (5)	$ 0	$ 1	$ 1

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Condensed Consolidated Statements of Equity - USD ($) $ in Millions	Total	Common Stock	Additional Paid-In Capital	Treasury Stock at Cost	Shares Held In Trust	Equity Compensation Reserve	Accumulated Other Comprehensive Income	Retained Earnings	Total Shareholders' Equity	Non-Controlling Interests
Balance beginning of period at Dec. 31, 2020	$ 9,923	$ 1	$ 5,927	$ 0	$ (4)	$ 8	$ 3,821	$ (324)	$ 9,429	$ 494
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	2,784							2,598	2,598	186
Change in unrealized investment gains and losses, net of tax	(1,776)						(1,776)		(1,776)
Change in equity of noncontrolling interests	(82)									(82)
Shares sold in connection with demerger	5		1		4				5
Reserve for equity compensation plans	2					2			2
Balance end of period at Sep. 30, 2021	10,856	1	5,928	0	0	10	2,045	2,274	10,258	598
Balance beginning of period at Dec. 31, 2020	9,923	1	5,927	0	(4)	8	3,821	(324)	9,429	494
Balance end of period at Dec. 31, 2021	11,074	1	6,051	(211)	0	0	1,744	2,809	10,394	680
Balance beginning of period at Jun. 30, 2021	10,990	1	5,927	0	(4)	9	2,390	2,068	10,391	599
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	268							206	206	62
Change in unrealized investment gains and losses, net of tax	(345)						(345)		(345)
Change in equity of noncontrolling interests	(63)									(63)
Shares sold in connection with demerger	5		1		4				5
Reserve for equity compensation plans	1					1			1
Balance end of period at Sep. 30, 2021	10,856	1	5,928	0	0	10	2,045	2,274	10,258	598
Balance end of period at Dec. 31, 2021	11,074	1	6,051	(211)	0	0	1,744	2,809	10,394	680
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	6,458							6,407	6,407	51
Change in unrealized investment gains and losses, net of tax	(7,462)						(7,462)		(7,462)
Change in equity of noncontrolling interests	(2)									(2)
Dividends on common stock	(151)							(151)	(151)
Purchase of treasury stock	(279)			(279)					(279)
Share based compensation	65		(15)	80					65
Balance end of period at Sep. 30, 2022	9,703	1	6,036	(410)	0	0	(5,718)	9,065	8,974	729
Balance beginning of period at Jun. 30, 2022	10,310	1	6,020	(371)	0	0	(3,722)	7,635	9,563	747
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	1,468							1,479	1,479	(11)
Change in unrealized investment gains and losses, net of tax	(1,996)						(1,996)		(1,996)
Change in equity of noncontrolling interests	(7)									(7)
Dividends on common stock	(49)							(49)	(49)
Purchase of treasury stock	(39)			(39)					(39)
Share based compensation	16		16						16
Balance end of period at Sep. 30, 2022	$ 9,703	$ 1	$ 6,036	$ (410)	$ 0	$ 0	$ (5,718)	$ 9,065	$ 8,974	$ 729

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Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Cash flows from operating activities:
Net income (loss)	$ 6,458	$ 2,784
Adjustments to reconcile net income to net cash provided by operating activities:
Net realized losses (gains) on investments	131	(204)
Net losses (gains) on derivatives	(4,362)	1,413
Net losses (gains) on funds withheld reinsurance	(2,660)	(15)
Interest credited on other contract holder funds, gross	628	630
Mortality, expense and surrender charges	(400)	(418)
Amortization of discount and premium on investments	19	40
Deferred income tax expense (benefit)	1,625	544
Share-based compensation	96	60
Change in:
Accrued investment income	(6)	47
Deferred acquisition costs	1,783	(43)
Funds withheld, net of reinsurance	(204)	(609)
Other assets and liabilities, net	(167)	(694)
Net cash provided by (used in) operating activities	2,941	3,535
Sales, maturities and repayments of:
Debt securities	8,959	12,994
Equity securities	54	36
Mortgage loans	1,046	1,243
Purchases of:
Debt securities	(8,861)	(8,290)
Equity securities	(27)	(108)
Mortgage loans	(1,378)	(2,176)
Settlements related to derivatives and collateral on investments	3,109	(3,223)
Other investing activities	(433)	148
Net cash provided by (used in) investing activities	2,469	624
Policyholders' account balances:
Deposits	14,235	14,649
Withdrawals	(18,716)	(21,590)
Net transfers from (to) separate accounts	3,805	2,068
Proceeds from (payments on) repurchase agreements and securities lending	(1,563)	(794)
Net proceeds from (payments on) Federal Home Loan Bank notes	0	(380)
Net proceeds from (payments on) debt	(784)	2,346
Net proceeds from issuance of Senior Notes	750	0
Debt issuance costs	(7)	0
Disposition of shares held in trust at cost, net	0	5
Dividends on common stock	(151)	0
Purchase of treasury stock	(279)	0
Other financing activities	10	0
Net cash provided by (used in) financing activities	(2,700)	(3,696)
Net increase (decrease) in cash, cash equivalents, and restricted cash	2,710	463
Cash, cash equivalents, and restricted cash at beginning of period	2,631	2,019
Total cash, cash equivalents, and restricted cash at end of period	5,341	2,482
Supplemental cash flow information
Income taxes paid (received)	(2)	36
Interest paid	48	15
Non-cash investing activities
Debt securities acquired from exchanges, payments-in-kind, and similar transactions	436	303
Other invested assets acquired from stock splits and stock distributions	42	99
Reconciliation to Statement of Financial Position
Cash and cash equivalents	5,331	2,482
Restricted cash (included in Other assets)	10	0
Total cash, cash equivalents, and restricted cash	$ 5,341	$ 2,482

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Business and Basis of Presentation

9 Months Ended

Sep. 30, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Business and Basis of Presentation

Business and Basis of Presentation

Jackson Financial Inc. (“Jackson Financial”) along with its subsidiaries (collectively, the “Company,” which also may be referred to as “we,” “our” or “us”), is a financial services company focused on helping Americans grow and protect their retirement savings and income to enable them to pursue financial freedom for life. Jackson Financial, domiciled in the state of Delaware in the United States (“U.S.”), was a majority-owned subsidiary of Prudential plc (“Prudential”), London, England, and was the holding company for Prudential’s U.S. operations. As described below under "Other," the Company's demerger from Prudential was completed on September 13, 2021 ("Demerger"), and the Company is a stand-alone U.S. public company.

Jackson Financial’s primary life insurance subsidiary, Jackson National Life Insurance Company and its insurance subsidiaries (collectively, “Jackson”), is licensed to sell group and individual annuity products (including immediate, registered index-linked, deferred fixed, fixed index and variable annuities), and individual life insurance products, including variable universal life, in all 50 states and the District of Columbia. Jackson also participates in the institutional products market through the issuance of guaranteed investment contracts (“GICs”), funding agreements and medium-term note funding agreements. Jackson Financial’s primary operating subsidiaries, in addition to Jackson, are as follows:

•PPM America, Inc. (“PPM”), is the Company’s investment management operation that manages the life insurance companies’ general account investment funds. PPM also provides investment services to other former affiliated and unaffiliated institutional clients.

•Brooke Life Insurance Company (“Brooke Life”), Jackson’s direct parent, is a life insurance company licensed to sell life insurance and annuity products in the state of Michigan.

Other wholly-owned subsidiaries of Jackson are as follows:

•Life insurers: Jackson National Life Insurance Company of New York (“JNY”); Squire Reassurance Company LLC (“Squire Re”); Squire Reassurance Company II, Inc. (“Squire Re II”); and VFL International Life Company SPC, LTD;

•Registered broker-dealer: Jackson National Life Distributors, LLC ("JNLD");

•Registered investment adviser: Jackson National Asset Management, LLC ("JNAM"), which manages the life insurance companies' separate account funds underlying the variable annuities products, which are sub-advised. JNAM manages and oversees those sub-advisers;

•Service provider: PGDS (US One) LLC (“PGDS”), which provides certain services to the Company and certain former affiliates; and

•Other insignificant wholly-owned subsidiaries.

The Company's Condensed Consolidated Financial Statements also include other insignificant partnerships, limited liability companies (“LLCs”) and other variable interest entities (“VIEs”) in which the Company is deemed the primary beneficiary.

Other

On August 6, 2021, the Company's Class A Common Stock was registered on a Form 10 registration statement filed with the U.S. Securities and Exchange Commission (the "SEC") and became effective under the Securities Exchange Act of 1934, as amended. We refer to that effective Form 10 registration as the "Form 10." The Demerger transaction described in the Form 10 was consummated on September 13, 2021. As of September 30, 2022, Prudential retained a 9.1% remaining interest in the Company.

On September 9, 2021, the Company effected a 104,960.3836276-for-1 stock split of its Class A Common Stock and Class B Common Stock by way of a reclassification of its Class A Common Stock and Class B Common Stock (the “stock split”). The incremental par value of the newly issued shares was recorded with the offset to additional paid-in capital. All share and earnings per share information presented herein have been retroactively adjusted to reflect the stock split.

On June 18, 2020, the Company’s subsidiary, Jackson, announced that it had entered into a funds withheld coinsurance agreement with Athene Life Re Ltd. (“Athene”) effective June 1, 2020, to reinsure on a 100% quota share basis, a block of Jackson’s in-force fixed and fixed-index annuity product liabilities in exchange for a $1.2 billion ceding commission (the "Athene Reinsurance Agreement").

In addition, we entered into an investment agreement with Athene Life Re Ltd., pursuant to which Athene invested $500 million of capital in return for a 9.9% voting interest corresponding to a 11.1% economic interest in the Company. That investment was completed on July 17, 2020. In August 2020, the Company made a $500 million capital contribution to its subsidiary, Jackson. As of September 30, 2022, Athene retained a 9.0% voting interest and 9.0% economic interest.

We continue to monitor developments related to the COVID-19 pandemic. The COVID-19 pandemic caused significant economic and financial turmoil in the United States and around the world. There has been a steady resumption of activity during 2022; however, at this time it is not possible to estimate the long-term effectiveness of any therapeutic treatments and vaccines for COVID-19, or their efficacy with respect to current or future variants or mutations of COVID-19, or the longer-term effects that the COVID-19 pandemic could have on our business. The extent to which the COVID-19 pandemic impacts our business, results of operations, financial condition and cash flows will depend on future developments that are highly uncertain and cannot be predicted. The Company implemented business continuity plans that already were in place to ensure the availability of services for our customers, work at home capabilities for our employees, where appropriate, and other ongoing risk management activities. The Company had employees, as needed or voluntarily, in our offices during this time, as permitted by local and state restrictions. The Company rolled out a broader “return to office plan” for all employees, and since September 2022, required some associates to return to the office five days a week. Employees below director level remain on an “office-centric” hybrid schedule between in-office and remote working arrangements.

Basis of Presentation

The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information. Accordingly, certain financial information that is normally included in annual financial statements prepared in accordance with GAAP, but not required for interim reporting purposes, has been condensed or omitted. These Condensed Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements and the related notes included in our Annual Report on Form 10-K for the year ended December 31, 2021, as filed with the SEC on March 7, 2022, (the "2021 Annual Report"). The condensed consolidated financial information as of December 31, 2021, included herein, has been derived from the audited Consolidated Financial Statements in the 2021 Annual Report, although certain amounts have been reclassified to conform to the 2022 presentation.

Certain accounting policies, which significantly affect the determination of financial condition, results of operations and cash flows, are summarized in the Notes to Consolidated Financial Statements in the Company’s 2021 Annual Report.

In the opinion of management, these financial statements include all normal recurring adjustments necessary for a fair presentation of the Company’s results. Operating results for the three and nine months ended September 30, 2022, are not necessarily indicative of the results that may be expected for the full year ending December 31, 2022. All material intercompany accounts and transactions have been eliminated in consolidation.

Use of Estimates

The preparation of the Condensed Consolidated Financial Statements in conformity with GAAP requires the use of estimates and assumptions about future events that affect the amounts reported in the Condensed Consolidated Financial Statements and the accompanying notes. Significant estimates or assumptions, as further discussed in the notes, include:

•Valuation of investments and derivative instruments, including fair values of securities deemed to be in an illiquid market and the determination of when an impairment is necessary;

•Assessments as to whether certain entities are variable interest entities, the existence of reconsideration events and the determination of which party, if any, should consolidate the entity;

•Assumptions impacting estimated future gross profits, including policyholder behavior, mortality rates, expenses, projected hedging costs, investment returns and policy crediting rates, used in the calculation of amortization of deferred acquisition costs;

•Assumptions used in calculating policy reserves and liabilities, including policyholder behavior, mortality rates, expenses, investment returns and policy crediting rates;

•Assumptions as to future earnings levels being sufficient to realize deferred tax benefits;

•Estimates related to expectations of credit losses on certain financial assets and off-balance sheet exposures;

•Assumptions and estimates associated with the Company’s tax positions, including an estimate of the dividends received deduction, which impact the amount of recognized tax benefits recorded by the Company; and

•Assumptions used in calculating the value of guaranteed benefits.

These estimates and assumptions are based on management’s best estimates and judgments. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors deemed appropriate. As facts and circumstances dictate, these estimates and assumptions may be adjusted. Since future events and their effects cannot be determined with precision, actual results could differ significantly from these estimates. Changes in estimates, including those resulting from continuing changes in the economic environment, will be reflected in the consolidated financial statements in the periods the estimates are changed.

Revision of Prior Period Financial Statements

The Company identified errors related to the classification of certain balances and amounts in the line items of the consolidated balance sheets and consolidated income statements. These errors resulted in the revision of balances and amounts related to deferred sales inducement assets, liabilities for certain life-contingent annuities, sub-advisor fee expenses, and other operating expense items that impacted previously issued consolidated financial statements. The impact of these errors to the current and the prior periods' consolidated financial statements were not considered to be material and had no impact on shareholders' equity or net income. However, to improve the consistency and comparability of the financial statements, management revised the financial statements and related disclosures in this quarterly report. See Note 20 to the Notes to Condensed Consolidated Financial Statements for details of the revisions.

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New Accounting Standards

9 Months Ended

Sep. 30, 2022

Accounting Policies [Abstract]

New Accounting Standards

New Accounting Standards

Changes in Accounting Principles – Adopted in Current Year

In March 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” The new guidance provides optional expedients for applying GAAP to contracts and other transactions affected by reference rate reform and is effective for contract modifications made between March 12, 2020 and December 31, 2022. If certain criteria are met, an entity will not be required to remeasure or reassess contracts impacted by reference rate reform. The practical expedient allowed by this standard was elected and is being applied prospectively by the Company as reference rate reform unfolds. The contracts modified to date met the criteria for the practical expedient and therefore had no material impact on the Company’s consolidated financial statements. The Company will continue to evaluate the impacts of reference rate reform on contract modifications and other transactions through December 31, 2022.

Changes in Accounting Principles – Issued but Not Yet Adopted

In August 2018, the FASB issued ASU 2018-12, “Targeted Improvements to the Accounting for Long-Duration Contracts,” which includes changes to the existing recognition, measurement, presentation and disclosure requirements for long-duration contracts issued by an insurance entity. ASU No. 2018-12 is effective for fiscal years beginning after December 15, 2022.

The amendments in ASU 2018-12 contain four significant changes:

1.Market risk benefits: market risk benefits, a new term for certain contracts or features that provide for potential benefits in addition to the account balance which expose us to other than nominal market risk (for example, certain guaranteed benefits on annuity contracts, including guaranteed minimum withdrawal benefits and guaranteed minimum death benefits on variable annuities), will be measured at fair value. Changes in fair value will be recorded and presented separately within the income statement, with the exception of changes in fair value due to instrument-specific credit risk, which will be recognized in other comprehensive income (loss) (“OCI”). See Note 10 for more information regarding guaranteed benefits;

2.Deferred acquisition costs: deferred acquisition costs (“DAC”) will be amortized on a constant-level basis, independent of profitability on the underlying business;

3.Liability for future policy benefits: annual review and, if necessary, update of cash flow assumptions used to measure the liability for future policy benefits for nonparticipating traditional and limited-payment insurance contracts will be required. These liabilities will be discounted using an upper-medium grade fixed income instrument yield which will be updated quarterly, with related changes in the liability recognized in OCI; and

4.Enhanced disclosures: enhanced disclosures, including disaggregated roll-forwards of certain balance sheet accounts that provide information about actual and expected cash flows, as well as information about significant inputs, judgments, assumptions and methods used in measurement, will be required. The enhanced disclosures are intended to improve the ability of users of the financial statements to evaluate the timing, amount, and uncertainty of cash flows arising from long-duration contracts.

The Company will adopt the standard effective January 1, 2023, with a transition date of January 1, 2021, using a modified retrospective approach, except for market risk benefits for which we will apply a full retrospective transition approach. Under the modified retrospective approach, the Company will apply the guidance to contracts in force on the transition date on the basis of their existing carrying value, using updated future cash flow assumptions, and eliminate certain related amounts in accumulated other comprehensive income (loss) (“AOCI”). Under the full retrospective transition approach, the Company will apply the guidance as of the earliest period presented, using actual historical experience information as of contract inception, as if the accounting principle had always been applied.

In accordance with its established governance framework, the Company continues to progress with implementation efforts including determining significant accounting policy decisions, modifying actuarial valuation models, revising reporting processes, and updating internal controls over financial reporting.

Given the nature and extent of the required changes, the adoption of this standard is expected to have a significant impact on the Company’s consolidated financial statements and disclosures. Based upon the elected transition methods, the Company currently estimates the adoption of the standard will result in a decrease of between approximately $2 billion and $4 billion in the Company’s total equity at the transition date of January 1, 2021. This estimate is based on the economic conditions experienced at the transition date.

The most significant drivers of the transition adjustment are expected to be:

•changes to the measurement of certain benefits currently accounted for as insurance benefits (e.g., guaranteed minimum death benefits on variable annuities) which will be classified as market risk benefits upon adoption and remeasured at fair value, the impact of which is highly dependent on market conditions, including interest rates;

•changes to the discount rate used to measure liabilities for future policyholder benefits that will be remeasured using current upper-medium grade fixed-income instrument yields, which are generally considered to be those on single-A rated public corporate debt; and

•the removal of certain balances recorded in AOCI related to changes in unrealized appreciation (depreciation) on investments.

In March 2022, the FASB issued ASU 2022-02, “Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures.” The new guidance eliminates the accounting guidance for troubled debt restructurings by creditors, and instead requires an entity to evaluate whether a modification represents a new loan or a continuation of an existing loan. The amendments also enhance disclosure requirements for certain loan refinancings and restructurings by creditors when a borrower is experiencing financial difficulty. New guidance for vintage disclosures requires that current-period gross write-offs be disclosed by year of origination for financing receivables and net investments in leases that fall within scope of the current expected credit loss model. The amendments in this update are effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Updates should be applied prospectively. However, an entity has the option to apply the modified retrospective method related to the recognition and measurements of troubled debt restructurings. Early adoption is permitted. The Company does not anticipate a significant impact when adopting the new guidance and does not plan to early adopt.

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Segment Information

9 Months Ended

Sep. 30, 2022

Segment Reporting [Abstract]

Segment Information

Segment Information

The Company has three reportable segments consisting of Retail Annuities, Institutional Products, Closed Life and Annuity Block, plus its Corporate and Other segment. These segments reflect how the Company’s chief operating decision maker views and manages the business. The following is a brief description of the Company’s reportable segments.

Retail Annuities

The Company’s Retail Annuities segment offers a variety of retirement income and savings products through its diverse suite of products, consisting primarily of variable annuities, fixed index annuities, fixed annuities, immediate payout annuities, and registered index-linked annuities ("RILA"). These products are distributed through various wirehouses, insurance brokers and independent broker-dealers, as well as through banks and financial institutions, primarily to high net worth investors and the mass and affluent markets.

The Company’s variable annuities represent an attractive option for retirees and soon-to-be retirees, providing access to equity market appreciation and add-on benefits, including guaranteed lifetime income. A fixed index annuity is designed for investors who desire principal protection with the opportunity to participate in capped upside investment returns linked to a reference market index. The Company also provides access to guaranteed lifetime income as an add-on benefit. A fixed annuity is a guaranteed product designed to build wealth without market exposure, through a crediting rate that is likely to be superior to interest rates offered from banks or money market funds. A RILA product offers customers exposure to market returns through market index-linked investment options, subject to a cap, and offers a variety of guarantees designed to modify or limit losses.

The financial results of the variable annuity business within the Company’s Retail Annuities segment are largely dependent on the performance of the contract holder account value, which impacts both the level of fees collected and the benefits paid to the contract holder. The financial results of the Company’s fixed annuities, including the fixed portion of its variable annuity, RILA and fixed index annuities, are largely dependent on the Company’s ability to earn a spread between earned investment rates on general account assets and the interest credited to contract holders.

Institutional Products

The Company’s Institutional Products consist of traditional Guaranteed Investment Contracts (GICs), funding agreements (including agreements issued in conjunction with the Company’s participation in the U.S. Federal Home Loan Bank ("FHLB") program) and medium-term note funding agreements. The Company’s GIC products are marketed to defined contribution pension and profit-sharing retirement plans. Funding agreements are marketed to institutional investors, including corporate cash accounts and securities lending funds, as well as money market funds, and are issued to the FHLB in connection with its program.

The financial results of the Company’s institutional products business are primarily dependent on the Company’s ability to earn a spread between earned investment rates on general account assets and the interest credited on GICs and funding agreements.

Closed Life and Annuity Blocks

The Company's Closed Life and Annuity Blocks segment is primarily composed of blocks of business that have been acquired since 2004. The segment includes various protection products, primarily whole life, universal life, variable universal life, and term life insurance products, as well as fixed, fixed index, and payout annuities. The Closed Life and Annuity Blocks segment also includes a block of group payout annuities that we assumed from John Hancock Life Insurance Company (USA) (“John Hancock”) and John Hancock Life Insurance Company of New York (“John Hancock NY”) through reinsurance transactions in 2018 and 2019, respectively. The Company historically offered traditional and interest-sensitive life insurance products but discontinued new sales of life insurance products in 2012, as we believe opportunistically acquiring mature blocks of life insurance policies is a more efficient means of diversifying our in-force business than selling new life insurance products.

The profitability of the Company’s Closed Life and Annuity Blocks segment is largely driven by its historical ability to appropriately price its products and purchase appropriately priced blocks of business, as realized through underwriting, expense and net gains (losses) on derivatives and investments, and the ability to earn an assumed rate of return on the assets supporting that business.

Corporate and Other

The Company’s Corporate and Other segment primarily consists of the operations of its investment management subsidiary, PPM, VIE’s, and unallocated corporate income and expenses. The Corporate and Other segment also includes certain eliminations and consolidation adjustments.

Segment Performance Measurement

Segment operating revenues and pretax adjusted operating earnings are non-GAAP financial measures that management believes are critical to the evaluation of the financial performance of the Company’s segments. The Company uses the same accounting policies and procedures to measure segment pretax adjusted operating earnings as used in its reporting of consolidated net income. Pretax adjusted operating earnings is defined as net income recorded in accordance with GAAP, excluding certain items that may be highly variable from period to period due to accounting treatment under GAAP, or that are non-recurring in nature, as well as certain other revenues and expenses that are not considered drivers of underlying performance. Operating revenues and pretax adjusted operating earnings should not be used as a substitute for revenues and net income as calculated in accordance with GAAP.

Pretax adjusted operating earnings equals net income adjusted to eliminate the impact of the following items:

1.Guaranteed Benefits and Hedging Results: the fees attributed to guaranteed benefits, the associated movements in optional guaranteed benefit liabilities and related claims and benefit payments are excluded from pretax adjusted operating earnings, as we believe this approach appropriately removes the impact to both revenue and related expenses associated with the guaranteed benefit features that are offered for certain of our variable annuities and fixed index annuities and gives investors a better picture of what is driving our underlying performance. This adjustment includes the following components:

•Fees Attributable to Guarantee Benefits: fees earned in conjunction with guaranteed benefit features offered for certain of our variable annuities and fixed index annuities are set at a level intended to mitigate the cost of hedging and funding the liabilities associated with such guaranteed benefit features. The full amount of the fees attributable to guaranteed benefit features have been excluded from pretax adjusted operating earnings as the related net movements in freestanding derivatives and net reserve and embedded derivative movements, as described below, have been excluded from pretax adjusted operating earnings. This adjusted presentation of our earnings is intended to directly align revenue and related expenses associated with the guaranteed benefit features;

•Net Movement in Freestanding Derivatives, except earned income (periodic settlements and changes in settlement accruals) on derivatives that are hedges of investments, but do not qualify for hedge accounting treatment: changes in the fair value of our freestanding derivatives used to manage the risk associated with our life and annuity reserves, including those arising from the guaranteed benefit features offered for certain of our variable annuities and fixed index annuities. Net movements in freestanding derivatives have been excluded from pretax adjusted operating earnings as the market value of these derivatives may vary significantly from period to period as a result of near-term market conditions and therefore are not directly comparable or reflective of the underlying performance of our business;

•Net Reserve and Embedded Derivative Movements: changes in the valuation of certain life and annuity reserves, a portion of which are accounted for as embedded derivative instruments, and which are primarily composed of variable and fixed index annuity reserves, including those arising from the guaranteed benefit features offered for certain of our variable annuities. Net reserve and embedded derivative movements have been excluded from pretax adjusted operating earnings as the carrying values of these derivatives may vary significantly from period to period as the result of near-term market conditions and policyholder behavior-related inputs and therefore are not directly comparable or reflective of the underlying performance of our business. Movements in reserves attributable to the current period claims and benefit payments in excess of a customer’s account value on these policies are also excluded from pretax adjusted operating earnings as these benefit payments are affected by near-term market conditions and policyholder behavior-related inputs and therefore may vary significantly from period to period;

•DAC and Deferred Sales Inducements ("DSI") Impact: amortization of deferred acquisition costs and deferred sales inducements associated with the items excluded from pretax adjusted operating earnings;

•Assumption changes: the impact on the valuation of Net Derivative and Reserve Movements, including amortization of DAC, arising from changes in underlying actuarial assumptions on an annual basis;

2.Net Realized Investment Gains and Losses including change in fair value of funds withheld embedded derivative: realized investment gains and losses associated with the periodic sales or disposals of securities, excluding those held within our trading portfolio, as well as impairments of securities, after adjustment for the non-credit component of the impairment charges and change in fair value of funds withheld embedded derivative related to the Athene Reinsurance Transaction;

3.Loss on Athene Reinsurance Transaction: includes contractual ceding commission, cost of reinsurance write-off and DAC and DSI write-off related to the Athene Reinsurance Transaction;

4.Net investment income on funds withheld assets: includes net investment income on funds withheld assets related to funds withheld reinsurance transactions;

5.Other items: one-time or other non-recurring items, such as costs relating to the Demerger and our separation from Prudential, the impact of discontinued operations and investments that are consolidated on our financial statements due to U.S. GAAP accounting requirements, such as our investments in collateralized loan obligations ("CLOs"), but for which the consolidation effects are not aligned with our economic interest or exposure to those entities.

Operating income taxes are calculated using the prevailing corporate federal income tax rate of 21% while taking into account any items recognized differently in our financial statements and federal income tax returns, including the dividends received deduction and other tax credits. For interim reporting periods, the Company uses an estimated annual effective tax rate ("ETR") in computing its tax provision including consideration of discrete items.

Set forth in the tables below is certain information with respect to the Company’s segments, as described above (in millions):

Three Months Ended September 30, 2022	Retail Annuities		Institutional Products		Closed Life and Annuity Blocks		Corporate and  Other		Total Consolidated
Operating Revenues
Fee income	$	1,002	$	—	$	118	$	13	$	1,133
Premiums	3		—		36		—		39
Net investment income	72		80		166		22		340
Income (loss) on operating derivatives	2		(8)		7		2		3
Other income	11		—		8		—		19
Total Operating Revenues	1,090		72		335		37		1,534
Operating Benefits and Expenses
Death, other policy benefits and change in policy     reserves, net of deferrals	5		—		176		—		181
Interest credited on other contract holder funds, net     of deferrals and amortization	72		51		101		—		224
Interest expense	8		—		—		21		29
Operating costs and other expenses, net of deferrals	541		1		22		28		592
Amortization of deferred acquisition costs	100		—		3		1		104
Total Operating Benefits and Expenses	726		52		302		50		1,130
Pretax Adjusted Operating Earnings	$	364	$	20	$	33	$	(13)	$	404

Three Months Ended September 30, 2021	Retail Annuities		Institutional Products		Closed Life and Annuity Blocks		Corporate and  Other		Total Consolidated
Operating Revenues
Fee income	$	1,194	$	—	$	123	$	15	$	1,332
Premiums	2		—		39		—		41
Net investment income	180		69		245		(23)		471
Income (loss) on operating derivatives	13		(1)		18		8		38
Other income	12		—		7		(2)		17
Total Operating Revenues	1,401		68		432		(2)		1,899
Operating Benefits and Expenses
Death, other policy benefits and change in policy     reserves, net of deferrals	38		—		216		—		254
Interest credited on other contract holder funds, net     of deferrals and amortization	56		47		106		—		209
Interest expense	6		(2)		—		2		6
Operating costs and other expenses, net of deferrals	614		2		38		31		685
Amortization of deferred acquisition costs	160		—		4		10		174
Total Operating Benefits and Expenses	874		47		364		43		1,328
Pretax Adjusted Operating Earnings	$	527	$	21	$	68	$	(45)	$	571

Nine Months Ended September 30, 2022	Retail Annuities		Institutional Products		Closed Life and Annuity Blocks		Corporate and  Other		Total Consolidated
Operating Revenues
Fee income	$	3,144	$	—	$	358	$	43	$	3,545
Premiums	6		—		108		—		114
Net investment income	299		216		522		65		1,102
Income (loss) on operating derivatives	20		(13)		35		20		62
Other income	33		—		25		2		60
Total Operating Revenues	3,502		203		1,048		130		4,883
Operating Benefits and Expenses
Death, other policy benefits and change in policy     reserves, net of deferrals	54		—		636		—		690
Interest credited on other contract holder funds, net     of deferrals and amortization	191		137		300		—		628
Interest expense	19		—		—		54		73
Operating costs and other expenses, net of deferrals	1,648		4		74		74		1,800
Amortization of deferred acquisition costs	602		—		7		18		627
Total Operating Benefits and Expenses	2,514		141		1,017		146		3,818
Pretax Adjusted Operating Earnings	$	988	$	62	$	31	$	(16)	$	1,065

Nine Months Ended September 30, 2021	Retail Annuities		Institutional Products		Closed Life and Annuity Blocks		Corporate and  Other		Total Consolidated
Operating Revenues
Fee income	$	3,433	$	—	$	371	$	49	$	3,853
Premiums	15		—		110		—		125
Net investment income	541		189		723		9		1,462
Income (loss) on operating derivatives	42		(1)		56		20		117
Other income	35		—		29		6		70
Total Operating Revenues	4,066		188		1,289		84		5,627
Operating Benefits and Expenses
Death, other policy benefits and change in policy     reserves, net of deferrals	90		—		629		—		719
Interest credited on other contract holder funds, net     of deferrals and amortization	168		147		315		—		630
Interest expense	17		—		—		2		19
Operating costs and other expenses, net of deferrals	1,780		4		131		111		2,026
Amortization of deferred acquisition costs	232		—		11		25		268
Total Operating Benefits and Expenses	2,287		151		1,086		138		3,662
Pretax Adjusted Operating Earnings	$	1,779	$	37	$	203	$	(54)	$	1,965

Intersegment eliminations in the above tables are included in the Corporate and Other segment. These include the elimination of investment income, net of deferred acquisition costs amortization, between Retail Annuities and the Corporate and Other segments, as well as the elimination from fee income and investment income of investment fees paid by Jackson to its affiliate PPM, which were $18 million and $17 million for the three months ended September 30, 2022 and 2021, respectively, and $52 million and $52 million for the nine months ended September 30, 2022 and 2021, respectively.

The following table summarizes the reconciling items from the non-GAAP measure of operating revenues to the GAAP measure of total revenues attributable to the Company (in millions):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Total operating revenues	$	1,534	$	1,899	$	4,883	$	5,627
Fees attributed to variable annuity benefit reserves	771		728		2,300		2,101
Net gains (losses) on derivatives and investments	1,416		(1,418)		6,829		(1,311)
Net investment income (loss) related to noncontrolling interests	(11)		62		51		186
Consolidated investments	(1)		4		(68)		35
Net investment income on funds withheld assets	313		300		937		884
Total revenues (1)	$	4,022	$	1,575	$	14,932	$	7,522

(1) Substantially all the Company's revenues originated in the United States. There were no individual customers that exceeded 10% of total revenues.

The following table summarizes the reconciling items from the non-GAAP measure of operating benefits and expenses to the GAAP measure of total benefits and expenses attributable to the Company (in millions):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Total operating benefits and expenses	$	1,130	$	1,328	$	3,818	$	3,662
Benefits attributed to variable annuity benefit reserves	65		25		158		91
Amortization of DAC and DSI related to non-operating revenues and expenses	458		(169)		1,648		284
Statement of Position 03-1 reserve movements	341		127		1,242		123
Other items	1		12		2		63
Total benefits and expenses	$	1,995	$	1,323	$	6,868	$	4,223

The following table summarizes the reconciling items, net of deferred acquisition costs and deferred sales inducements, from the non-GAAP measure of pretax adjusted operating earnings to the GAAP measure of net income attributable to the Company (in millions):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Pretax adjusted operating earnings	$	404	$	571	$	1,065	$	1,965
Non-operating adjustments (income) loss:
Guaranteed benefits and hedging results:
Fees attributable to guarantee benefit reserves	771		728		2,300		2,101
Net movement in freestanding derivatives	(253)		(493)		1,118		(3,966)
Net reserve and embedded derivative movements	714		(997)		1,781		2,222
DAC and DSI impact	(458)		169		(1,648)		(284)
Assumption changes	—		—		—		—
Total guaranteed benefits and hedging results	774		(593)		3,551		73
Net realized investment gains (losses) including change in fair value of funds withheld embedded derivative	549		(79)		2,529		219
Net investment income on funds withheld assets	313		300		937		884
Other items	(2)		(9)		(69)		(28)
Pretax income (loss) attributable to Jackson Financial Inc.	2,038		190		8,013		3,113
Income tax expense (benefit)	559		(16)		1,606		515
Net income (loss) attributable to Jackson Financial Inc.	$	1,479	$	206	$	6,407	$	2,598

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Investments

9 Months Ended

Sep. 30, 2022

Investments, Debt and Equity Securities [Abstract]

Investments

Investments

Investments are comprised primarily of fixed-income securities and loans, primarily publicly-traded corporate and government bonds, asset-backed securities and mortgage loans. Asset-backed securities include mortgage-backed and other structured securities. The Company generates the majority of its general account deposits from interest-sensitive individual annuity contracts, life insurance products and institutional products on which it has committed to pay a declared rate of interest. The Company's strategy of investing in fixed-income securities and loans aims to ensure matching of the asset yield with the amounts credited to the interest-sensitive liabilities and to earn a stable return on its investments.

Debt Securities

The following table sets forth the composition of the fair value of debt securities at September 30, 2022 and December 31, 2021, classified by rating categories as assigned by nationally recognized statistical rating organizations (“NRSRO”), the National Association of Insurance Commissioners (“NAIC”), or if not rated by such organizations, the Company’s investment advisors. The Company uses the second lowest rating by an NRSRO when NRSRO ratings are not equivalent and, for purposes of the table, if not otherwise rated by a NRSRO, the NAIC rating of a security is converted to an equivalent NRSRO-style rating. At September 30, 2022 and December 31, 2021, the carrying value of investments rated by the Company’s consolidated investment advisor totaled $72 million and $13 million, respectively.

	Percent of Total Debt Securities Carrying Value
	September 30, 2022	December 31, 2021
Investment Rating
AAA	15.3%	14.5%
AA	8.8%	9.6%
A	29.9%	28.5%
BBB	38.2%	40.9%
Investment grade	92.2%	93.5%
BB	4.0%	3.6%
B and below	3.8%	2.9%
Below investment grade	7.8%	6.5%
Total debt securities	100.0%	100.0%

At September 30, 2022, based on ratings by NRSROs, of the total carrying value of debt securities in an unrealized loss position, 73% were investment grade, 7% were below investment grade and 20% were not rated. Unrealized losses on debt securities that were below investment grade or not rated were approximately 20% of the aggregate gross unrealized losses on available-for-sale debt securities.

At December 31, 2021, based on ratings by NRSROs, of the total carrying value of debt securities in an unrealized loss position, 76% were investment grade, 2% were below investment grade and 22% were not rated. Unrealized losses on debt securities that were below investment grade or not rated were approximately 16% of the aggregate gross unrealized losses on available for sale debt securities.

Corporate securities in an unrealized loss position were diversified across industries. As of September 30, 2022, the industries accounting for the largest percentage of unrealized losses included utilities (16% of corporate gross unrealized losses) and healthcare (10%). The largest unrealized loss related to a single corporate obligor was $61 million at September 30, 2022.

As of December 31, 2021, the industries accounting for the largest percentage of unrealized losses included financial services (16% of corporate gross unrealized losses) and consumer goods (15%). The largest unrealized loss related to a single corporate obligor was $16 million at December 31, 2021.

At September 30, 2022 and December 31, 2021, the amortized cost, allowance for credit loss ("ACL"), gross unrealized gains and losses, and fair value of debt securities, including trading securities and securities carried at fair value under the fair value option, were as follows (in millions):

				Allowance		Gross		Gross
		Amortized		for		Unrealized		Unrealized		Fair
September 30, 2022		Cost (1)		Credit Loss		Gains		Losses		Value
	U.S. government securities	$	5,064	$	—	$	—	$	1,008	$	4,056
	Other government securities	1,712		3		2		262		1,449
	Public utilities	5,901		—		19		811		5,109
	Corporate securities	29,748		23		30		4,360		25,395
	Residential mortgage-backed	492		5		20		52		455
	Commercial mortgage-backed	1,818		—		—		173		1,645
	Other asset-backed securities	6,359		—		9		570		5,798
	Total debt securities	$	51,094	$	31	$	80	$	7,236	$	43,907
				Allowance		Gross		Gross
		Amortized		for		Unrealized		Unrealized		Fair
December 31, 2021		Cost (1)		Credit Loss		Gains		Losses		Value
	U.S. government securities	$	4,525	$	—	$	97	$	301	$	4,321
	Other government securities	1,489		—		147		17		1,619
	Public utilities	6,069		—		671		25		6,715
	Corporate securities	29,701		—		1,682		237		31,146
	Residential mortgage-backed	528		2		46		3		569
	Commercial mortgage-backed	1,968		—		76		6		2,038
	Other asset-backed securities	6,926		7		71		23		6,967
	Total debt securities	$	51,206	$	9	$	2,790	$	612	$	53,375
	(1) Amortized cost, apart from the carrying value for securities carried at fair value under the fair value option and trading securities.

The amortized cost, ACL, gross unrealized gains and losses, and fair value of debt securities at September 30, 2022, by contractual maturity, are shown below (in millions). Actual maturities may differ from contractual maturities where securities can be called or prepaid with or without early redemption penalties.

			Allowance		Gross		Gross
	Amortized		for		Unrealized		Unrealized		Fair
	Cost (1)		Credit Loss		Gains		Losses		Value
Due in 1 year or less	$	1,333	$	—	$	1	$	6	$	1,328
Due after 1 year through 5 years	9,655		3		8		497		9,163
Due after 5 years through 10 years	14,158		20		9		1,896		12,251
Due after 10 years through 20 years	9,260		3		32		1,842		7,447
Due after 20 years	8,019		—		1		2,200		5,820
Residential mortgage-backed	492		5		20		52		455
Commercial mortgage-backed	1,818		—		—		173		1,645
Other asset-backed securities	6,359		—		9		570		5,798
Total	$	51,094	$	31	$	80	$	7,236	$	43,907

(1) Amortized cost, apart from the carrying value for securities carried at fair value under the fair value option and trading securities.

As required by law in various states in which business is conducted, securities with a carrying value of $90 million and $117 million at September 30, 2022 and December 31, 2021, respectively, were on deposit with regulatory authorities.

Residential mortgage-backed securities (“RMBS”) include certain RMBS that are collateralized by residential mortgage loans and are neither expressly nor implicitly guaranteed by U.S. government agencies (“non-agency RMBS”). The Company’s non-agency RMBS include investments in securities backed by prime, Alt-A, and subprime loans, as follows (in millions):

			Allowance		Gross		Gross
	Amortized		for		Unrealized		Unrealized		Fair
September 30, 2022	Cost (1)		Credit Loss		Gains		Losses		Value
Prime	$	209	$	3	$	2	$	25	$	183
Alt-A	83		2		9		7		83
Subprime	29		—		9		—		38
Total non-agency RMBS	$	321	$	5	$	20	$	32	$	304
			Allowance		Gross		Gross
	Amortized		for		Unrealized		Unrealized		Fair
December 31, 2021	Cost (1)		Credit Loss		Gains		Losses		Value
Prime	$	228	$	1	$	10	$	2	$	235
Alt-A	94		1		21		—		114
Subprime	39		—		13		—		52
Total non-agency RMBS	$	361	$	2	$	44	$	2	$	401
(1) Amortized cost, apart from carrying value for securities carried at fair value under the fair value option and trading securities.

The Company defines its exposure to non-agency residential mortgage loans as follows:

•Prime loan-backed securities are collateralized by mortgage loans made to the highest rated borrowers.

•Alt-A loan-backed securities are collateralized by mortgage loans made to borrowers who lack credit documentation or necessary requirements to obtain prime borrower rates.

•Subprime loan-backed securities are collateralized by mortgage loans made to borrowers that have a FICO score of 660 or lower.

The following table summarizes the number of securities, fair value and the gross unrealized losses of debt securities, aggregated by investment category and length of time that individual debt securities have been in a continuous loss position (dollars in millions):

	September 30, 2022					December 31, 2021
	Less than 12 months					Less than 12 months
	Gross		Fair Value			Gross		Fair Value
	Unrealized				# of	Unrealized				# of
	Losses				securities	Losses				securities
U.S. government securities	$	276	$	2,260	41	$	2	$	107	16
Other government securities	256		1,371		154	17		252		23
Public utilities	659		4,476		530	17		721		93
Corporate securities	3,217		19,878		2,649	180		6,343		728
Residential mortgage-backed	40		293		217	3		174		109
Commercial mortgage-backed	146		1,537		192	5		314		37
Other asset-backed securities	519		4,912		610	22		3,224		338
Total temporarily impaired securities	$	5,113	$	34,727	4,393	$	246	$	11,135	1,344
	12 months or longer					12 months or longer
	Gross		Fair Value			Gross		Fair Value
	Unrealized				# of	Unrealized				# of
	Losses				securities	Losses				securities
U.S. government securities	$	732	$	1,634	8	$	299	$	3,190	7
Other government securities	6		47		10	—		4		2
Public utilities	152		336		55	7		99		8
Corporate securities	1,143		2,704		396	58		661		69
Residential mortgage-backed	12		71		75	—		11		12
Commercial mortgage-backed	27		95		16	1		30		3
Other asset-backed securities	51		309		41	1		11		3
Total temporarily impaired securities	$	2,123	$	5,196	601	$	366	$	4,006	104
	Total					Total
	Gross					Gross
	Unrealized		Fair		# of	Unrealized		Fair		# of
	Losses		Value		securities (1)	Losses		Value		securities (1)
U.S. government securities	$	1,008	$	3,894	43	$	301	$	3,297	23
Other government securities	262		1,418		164	17		256		25
Public utilities	811		4,812		575	24		820		101
Corporate securities	4,360		22,582		2,936	238		7,004		797
Residential mortgage-backed	52		364		292	3		185		121
Commercial mortgage-backed	173		1,632		207	6		344		40
Other asset-backed securities	570		5,221		651	23		3,235		341
Total temporarily impaired securities	$	7,236	$	39,923	4,868	$	612	$	15,141	1,448

(1) Certain securities contain multiple lots and fit the criteria of both aging groups.

Debt securities in an unrealized loss position as of September 30, 2022 did not require an impairment recognized in earnings as (i) the Company did not intend to sell these debt securities, (ii) it is not more likely than not that the Company will be required to sell these securities before recovery of their amortized cost basis, and (iii) the difference in the fair value compared to the amortized cost was due to factors other than credit loss. Based upon this evaluation, the Company believes it has the ability to generate adequate amounts of cash from normal operations to meet cash requirements with a reasonable margin of safety without requiring the sale of impaired securities.

As of September 30, 2022, unrealized losses associated with debt securities are primarily due to widening credit spreads or rising risk-free rates since purchase. The Company performed a detailed analysis of the financial performance of the underlying issues in an unrealized loss position and determined that recovery of the entire amortized cost of each impaired security is expected. In addition, mortgage-backed and asset-backed securities were assessed for credit impairment using a cash flow model that incorporates key assumptions including default rates, severities, and prepayment rates. The Company estimated losses for a security by forecasting performance in the underlying loans in each transaction. The forecasted loan performance was used to project cash flows to the various tranches in the structure, as applicable. The forecasted cash flows also considered, as applicable, independent industry analyst reports and forecasts, and other independent market data. Based upon this assessment of the expected credit losses of the security given the performance of the underlying collateral compared to subordination or other credit enhancement, the Company expects to recover the entire amortized cost of each impaired security.

Evaluation of Available-for-Sale Debt Securities for Credit Loss

For debt securities in an unrealized loss position, management first assesses whether the Company has the intent to sell, or whether it is more likely than not it will be required to sell the security before the amortized cost basis is fully recovered. If either criterion is met, the amortized cost is written down to fair value through net gains (losses) on derivatives and investments as an impairment.

Debt securities in an unrealized loss position for which the Company does not have the intent to sell or is not more likely than not to sell the security before recovery to amortized cost are further evaluated to determine if the cause of the decline in fair value resulted from credit losses or other factors, which includes estimates about the operations of the issuer and future earnings potential.

The credit loss evaluation may consider the following: the extent to which the fair value is below amortized cost; changes in ratings of the security; whether a significant covenant related to the security has been breached; whether an issuer has filed or indicated a possibility of filing for bankruptcy, has missed or announced it intends to miss a scheduled interest or principal payment, or has experienced a specific material adverse change that may impair its creditworthiness; judgments about an obligor’s current and projected financial position; an issuer’s current and projected ability to service and repay its debt obligations; the existence of, and realizable value of, any collateral backing the obligations; and the macro-economic and micro-economic outlooks for specific industries and issuers.

In addition to the above, the credit loss review of investments in asset-backed securities includes the review of future estimated cash flows, including expected and stress case scenarios, to identify potential shortfalls in contractual payments. These estimated cash flows are developed using available performance indicators from the underlying assets including current and projected default or delinquency rates, levels of credit enhancement, current subordination levels, vintage, expected loss severity and other relevant characteristics. These estimates reflect a combination of data derived by third parties and internally developed assumptions. Where possible, this data is benchmarked against third-party sources.

For mortgage-backed securities, credit losses are assessed using a cash flow model that estimates the cash flows on the underlying mortgages, using the security-specific collateral characteristics and transaction structure. The model estimates cash flows from the underlying mortgage loans and distributes those cash flows to various tranches of securities, considering the transaction structure and any subordination and credit enhancements existing in that structure. The cash flow model incorporates actual cash flows on the mortgage-backed securities through the current period and then projects the remaining cash flows using a number of assumptions, including prepayment timing, default rates and loss severity. Specifically, for prime and Alt-A RMBS, the assumed default percentage is dependent on the severity of delinquency status, with foreclosures and real estate owned receiving higher rates, but also includes the currently performing loans.

These estimates reflect a combination of data derived by third parties and internally developed assumptions. Where possible, this data is benchmarked against other third-party sources. In addition, these estimates are extrapolated along a default timing curve to estimate the total lifetime pool default rate. When a credit loss is determined to exist and the present value of cash flows expected to be collected is less than the amortized cost of the security, an allowance for credit loss is recorded along with a charge to net gains (losses) on derivatives and investments, limited by the amount that the fair value is less than amortized cost. Any remaining unrealized loss after recording the allowance for credit loss is the non-credit amount and is recorded to other comprehensive income.

The allowance for credit loss for specific debt securities may be increased or reversed in subsequent periods due to changes in the assessment of the present value of cash flows that are expected to be collected. Any changes to the allowance for credit loss is recorded as a provision for (or reversal of) credit loss expense in net gains (losses) on derivatives and investments.

When all, or a portion, of a security is deemed uncollectible, the uncollectible portion is written-off with an adjustment to amortized cost and a corresponding reduction to the allowance for credit losses.

Accrued interest receivables are presented separate from the amortized cost basis of debt securities. Accrued interest receivables that are determined to be uncollectible are written off with a corresponding reduction to net investment income. Accrued interest of nil was written off during the three and nine months ended September 30, 2022 and 2021.

The roll forward of the allowance for credit loss for available-for-sale securities by sector is as follows (in millions):

Three Months Ended September 30, 2022	US government securities		Other government securities		Public utilities		Corporate securities		Residential mortgage-backed		Commercial mortgage-backed		Other asset-backed securities		Total
Balance at July 1, 2022	$	—	$	6	$	1	$	30	$	6	$	—	$	—	$	43
Additions for which credit loss was not previously recorded	—		—		—		12		1		—		—		13
Changes for securities with previously recorded credit loss	—		—		(1)		(8)		(2)		—		—		(11)
Additions for purchases of PCD debt securities (1)	—		—		—		—		—		—		—		—
Reductions from charge-offs	—		—		—		—		—		—		—		—
Reductions for securities disposed	—		(3)		—		—		—		—		—		(3)
Securities intended/required to be sold before recovery of amortized cost basis	—		—		—		(11)		—		—		—		(11)
Balance at September 30, 2022 (2)	$	—	$	3	$	—	$	23	$	5	$	—	$	—	$	31

Three Months Ended September 30, 2021	US government securities		Other government securities		Public utilities		Corporate securities		Residential mortgage-backed		Commercial mortgage-backed		Other asset-backed securities		Total
Balance at July 1, 2021	$	—	$	—	$	—	$	—	$	1	$	—	$	6	$	7
Additions for which credit loss was not previously recorded	—		—		—		—		1		—		—		1
Changes for securities with previously recorded credit loss	—		—		—		—		—		—		17		17
Additions for purchases of PCD debt securities (1)	—		—		—		—		—		—		—		—
Reductions from charge-offs	—		—		—		—		—		—		—		—
Reductions for securities disposed	—		—		—		—		—		—		(16)		(16)
Securities intended/required to be sold before recovery of amortized cost basis	—		—		—		—		—		—		—		—
Balance at September 30, 2021 (2)	$	—	$	—	$	—	$	—	$	2	$	—	$	7	$	9

Nine Months Ended September 30, 2022	US government securities		Other government securities		Public utilities		Corporate securities		Residential mortgage-backed		Commercial mortgage-backed		Other asset-backed securities		Total
Balance at January 1, 2022	$	—	$	—	$	—	$	—	$	2	$	—	$	7	$	9
Additions for which credit loss was not previously recorded	—		6		1		42		3		—		—		52
Changes for securities with previously recorded credit loss	—		—		(1)		(3)		1		—		(7)		(10)
Additions for purchases of PCD debt securities (1)	—		—		—		—		—		—		—		—
Reductions from charge-offs	—		—		—		—		—		—		—		—
Reductions for securities disposed	—		(3)		—		—		(1)		—		—		(4)
Securities intended/required to be sold before recovery of amortized cost basis	—		—		—		(16)		—		—		—		(16)
Balance at September 30, 2022 (2)	$	—	$	3	$	—	$	23	$	5	$	—	$	—	$	31

Nine Months Ended September 30, 2021	US government securities		Other government securities		Public utilities		Corporate securities		Residential mortgage-backed		Commercial mortgage-backed		Other asset-backed securities		Total
Balance at January 1, 2021	$	—	$	—	$	—	$	—	$	—	$	—	$	14	$	14
Additions for which credit loss was not previously recorded	—		—		—		—		2		—		—		2
Changes for securities with previously recorded credit loss	—		—		—		—		—		—		9		9
Additions for purchases of PCD debt securities (1)	—		—		—		—		—		—		—		—
Reductions from charge-offs	—		—		—		—		—		—		—		—
Reductions for securities disposed	—		—		—		—		—		—		(16)		(16)
Securities intended/required to be sold before recovery of amortized cost basis	—		—		—		—		—		—		—		—
Balance at September 30, 2021 (2)	$	—	$	—	$	—	$	—	$	2	$	—	$	7	$	9

(1) Represents purchased credit-deteriorated ("PCD") fixed maturity available-for-sale securities.

(2) Accrued interest receivable on debt securities totaled $414 million and $397 million as of September 30, 2022 and 2021, respectively, and was excluded from the determination of credit losses for the three and nine months ended September 30, 2022 and 2021.

Net Investment Income

The sources of net investment income were as follows (in millions):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Debt securities (1)	$	306	$	272	$	792	$	872
Equity securities	(25)		—		(18)		6
Mortgage loans	70		79		211		242
Policy loans	18		20		52		55
Limited partnerships	(7)		193		151		586
Other investment income	14		2		25		10
Total investment income excluding funds withheld assets	376		566		1,213		1,771
Net investment income on funds withheld assets (see Note 8)	313		300		937		884
Investment expenses:
Derivative trading commission	(3)		(1)		(5)		(2)
Depreciation on real estate	(2)		(4)		(8)		(8)
Expenses related to consolidated entities (2)	(26)		(8)		(62)		(24)
Other investment income (expense) (3)	(18)		(16)		(53)		(53)
Total investment expenses	(49)		(29)		(128)		(87)
Net investment income	$	640	$	837	$	2,022	$	2,568

(1) Includes unrealized gains and losses on trading securities and includes $(8) million and $(103) million for the three and nine months ended September 30, 2022, respectively, and $(1) million and $37 million for the three and nine months ended September 30, 2021, respectively, related to the change in fair value for securities carried under the fair value option.

(2) Includes interest expense and change in fair value related to notes issued by consolidated VIE's, management fees, administrative fees, legal fees, and other expenses related to the consolidation of certain investments.

(3) Includes interest expense, investment software expense, custodial fees, and other bank fees; institutional product issuance related expenses; and other expenses.

Unrealized gains (losses) included in investment income that were recognized on equity securities held were $(17) million and $6 million, for the three months ended September 30, 2022 and 2021, respectively, and $(48) million and $21 million, for the nine months ended September 30, 2022 and 2021, respectively.

Net Gains (Losses) on Derivatives and Investments

The following table summarizes net gains (losses) on derivatives and investments (in millions):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Available-for-sale securities
Realized gains on sale	$	3	$	28	$	32	$	149
Realized losses on sale	(57)		(1)		(298)		(59)
Credit loss income (expense)	(6)		(17)		(5)		(10)
Credit loss income (expense) on mortgage loans	(5)		14		(2)		62
Other (1)	59		13		142		62
Net gains (losses) excluding derivatives and funds withheld assets	(6)		37		(131)		204
Net gains (losses) on derivative instruments (see Note 5)	870		(1,301)		4,362		(1,413)
Net gains (losses) on funds withheld reinsurance treaties (see Note 8)	555		(115)		2,660		15
Total net gains (losses) on derivatives and investments	$	1,419	$	(1,379)	$	6,891	$	(1,194)
(1) Includes the foreign currency gain or loss related to foreign denominated trust instruments supporting funding agreements.

Net gains (losses) on funds withheld reinsurance treaties represents income (loss) from the sale of investments held in segregated funds withheld accounts in support of reinsurance agreements for which Jackson retains legal ownership of the underlying investments. These gains (losses) are increased or decreased by changes in the embedded derivative liability related to the Athene Reinsurance Agreement and also include (i) changes in the related funds withheld payable, as all economic performance of the investments held in the segregated accounts inure to the benefit of the reinsurers under the respective reinsurance agreements with each reinsurer, and (ii) amortization of the difference between book value and fair value of the investments as of the effective date of the reinsurance agreements with each reinsurer.

The aggregate fair value of securities sold at a loss for the three and nine months ended September 30, 2022 was $1,068 million and $3,966 million, which was approximately 94% and 93% of book value, respectively. The aggregate fair value of securities sold at a loss for the three and nine months ended September 30, 2021 was $161 million and $1,345 million, which was approximately 98% and 95% of book value, respectively.

Proceeds from sales of available-for-sale debt securities were $1.4 billion and $6.3 billion during the three and nine months ended September 30, 2022, respectively, and $1.0 billion and $1.9 billion during the three and nine months ended September 30, 2021, respectively.

There are inherent uncertainties in assessing the fair values assigned to the Company’s investments. The Company’s reviews of net present value and fair value involve several criteria including economic conditions, credit loss experience, other issuer-specific developments and estimated future cash flows. These assessments are based on the best available information at the time. Factors such as market liquidity, the widening of bid/ask spreads and a change in the cash flow assumptions can contribute to future price volatility. If actual experience differs negatively from the assumptions and other considerations used in the consolidated financial statements, unrealized losses currently reported in accumulated other comprehensive income (loss) may be recognized in the consolidated income statements in future periods.

The Company currently has no intent to sell securities with unrealized losses considered to be temporary until they mature or recover in value and believes that it has the ability to do so. However, if the specific facts and circumstances surrounding an individual security, or the outlook for its industry sector change, the Company may sell the security prior to its maturity or recovery and realize a loss.

Consolidated Variable Interest Entities ("VIEs")

The Company funds affiliated limited liability companies to facilitate the issuance of collateralized loan obligations. The Company concluded that these limited liability companies are VIEs and that the Company is the primary beneficiary as it has the power to direct the most significant activities affecting the performance of the entity as well as the obligation to absorb losses or the right to receive benefits that could potentially be significant to the entity. In April 2022, the Company reinvested in collateralized loan obligation issuances resulting in an increase of consolidated assets and liabilities. The Company’s exposure to loss is limited to the capital invested and unfunded capital commitments.

Private Equity Funds III – VIII are limited partnership structures that invest the ownership capital in portfolios of various other limited partnership structures. The Company concluded that the Private Equity Funds are VIEs and that the Company is the primary beneficiary as it has the power to direct the most significant activities affecting the performance of the funds as well as the obligation to absorb losses or the right to receive benefits that could potentially be significant to the funds. In the fourth quarter of 2021, the Company entered into a commitment to invest up to $300 million in the newly formed Private Equity Fund VIII. The Company’s exposure to loss is limited to the capital invested and unfunded capital commitments.

PPM has created and managed institutional share class mutual funds, where Jackson seeds new funds, or new share classes within a fund, when deemed necessary to develop the requisite track record prior to allowing investment by external parties. Jackson may sell its interest in the fund once opened to investment by external parties. The Company concluded that these funds are VIEs and that the Company is the primary beneficiary as it has both the power to direct the most significant activities of the VIE as well as the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. The Company’s exposure to loss related to these mutual funds is limited to the capital invested.

Asset and liability information for the consolidated VIEs included on the Condensed Consolidated Balance Sheets are as follows (in millions):

	September 30, 2022		December 31, 2021
Assets
Debt securities, at fair value under fair value option	$	1,965	$	1,546
Debt securities, trading	102		117
Equity securities	111		129
Other invested assets	1,496		1,309
Cash and cash equivalents	53		120
Other assets	18		45
Total assets	$	3,745	$	3,266
Liabilities
Notes issued by consolidated VIEs, at fair value under fair value option	$	1,745	$	1,404
Other liabilities	407		307
Total other liabilities	2,152		1,711
Securities lending payable	5		4
Total liabilities	$	2,157	$	1,715
Equity
Noncontrolling interests	$	729	$	680

Unconsolidated VIEs

The Company invests in certain limited partnerships ("LPs") and limited liability companies ("LLCs") that it has concluded are VIEs. Based on the analysis of these entities, the Company is not the primary beneficiary of the VIEs as it does not have the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance. In addition, the Company does not have the obligation to absorb losses or the right to receive benefits that could potentially be significant to the entities. Therefore, the Company does not consolidate these VIEs and the carrying amounts of the Company’s investments in these LPs and LLCs are recognized in other invested assets on the Condensed Consolidated Balance Sheets. Unfunded capital commitments for these investments are detailed in Note 14. The Company’s exposure to loss is limited to the capital invested and unfunded capital commitments related to the LPs/LLCs, which was $4,321 million and $3,860 million as of September 30, 2022 and December 31, 2021, respectively. The capital invested in an LP or LLC equals the original capital contributed, increased for additional capital contributed after the initial investment, and reduced for any returns of capital from the LP or LLC. LPs and LLCs are carried at fair value.

The Company invests in certain mutual funds that it has concluded are VIEs. Based on the analysis of these entities, the Company is not the primary beneficiary of the VIEs. Mutual funds for which the Company does not have the obligation to absorb losses or the right to receive benefits that could potentially be significant to the entities are recognized in equity securities on the Condensed Consolidated Balance Sheets and were $26 million and $33 million as of September 30, 2022 and December 31, 2021, respectively. The Company’s maximum exposure to loss on these mutual funds is limited to the amortized cost for these investments.

The Company makes investments in structured debt securities issued by VIEs for which they are not the manager. These structured debt securities include RMBS, Commercial Mortgage-Backed Securities ("CMBS"), and asset-backed securities ("ABS"). The Company does not consolidate the securitization trusts utilized in these transactions because they do not have the power to direct the activities that most significantly impact the economic performance of these securitization trusts. The Company does not consider its continuing involvement with these VIEs to be significant because they either invest in securities issued by the VIE and were not involved in the design of the VIE or no transfers have occurred between the Company and the VIE. The Company’s maximum exposure to loss on these structured debt securities is limited to the amortized cost of these investments. The Company does not have any further contractual obligations to the VIE. The Company recognizes the variable interest in these VIEs at fair value on the consolidated balance sheets.

Commercial and Residential Mortgage Loans

Commercial mortgage loans of $10.5 billion and $10.5 billion at September 30, 2022 and December 31, 2021, respectively, are reported net of an allowance for credit losses of $76 million and $85 million at each date, respectively. At September 30, 2022, commercial mortgage loans were collateralized by properties located in 38 states, the District of Columbia, and Europe. Accrued interest receivable on commercial mortgage loans was $37 million and $32 million at September 30, 2022 and December 31, 2021, respectively.

Residential mortgage loans of $1,280 million and $939 million at September 30, 2022 and December 31, 2021, respectively, are reported net of an allowance for credit losses of $3 million and $9 million at each date, respectively. Loans were collateralized by properties located in 50 states, the District of Columbia, Mexico, and Europe. Accrued interest receivable on residential mortgage loans was $9 million and $13 million at September 30, 2022 and December 31, 2021, respectively.

Mortgage Loan Concessions

In response to the adverse economic impact of the COVID-19 pandemic, the Company granted concessions to certain of its commercial mortgage loan borrowers, including payment deferrals and other loan modifications. The Company has elected the option under the Coronavirus Aid, Relief, and Economic Security Act, the Consolidated Appropriations Act of 2021, and the Interagency Statement on Loan Modifications and Reporting for Financial Institutions Working with Customers Affected by the Coronavirus (Revised) not to account for or report qualifying concessions as troubled debt restructurings and does not classify such loans as past due during the payment deferral period. Additionally, in accordance with the FASB’s published response to a COVID-19 Pandemic technical inquiry, the Company continues to accrue interest income on such loans that have deferred payment. For some commercial mortgage loan borrowers (principally in the hotel and retail sectors), the Company granted concessions which were primarily interest and/or principal payment deferrals generally ranging from 6 to 14 months and, to a much lesser extent, maturity date extensions. Repayment periods are generally within one year but may extend until maturity date. Deferred commercial mortgage loan interest and principal payments were $11 million at September 30, 2022. The concessions granted had no impact on the Company’s results of operations or financial position as the Company has not granted concessions that would have been disclosed and accounted for as troubled debt restructurings.

Evaluation for Credit Losses on Mortgage Loans

The Company reviews mortgage loans that are not carried at fair value under the fair value option on a quarterly basis to estimate the ACL with changes in the ACL recorded in net gains (losses) on derivatives and investments. Apart from an ACL recorded on individual mortgage loans where the borrower is experiencing financial difficulties, the Company records an ACL on the pool of mortgage loans based on lifetime expected credit losses. The Company utilizes a third-party forecasting model to estimate lifetime expected credit losses at a loan level for mortgage loans. The model forecasts net operating income and property values for the economic scenario selected. The debt service coverage ratios (“DSCR”) and loan to values (“LTV”) are calculated over the forecastable period by comparing the projected net operating income and property valuations to the loan payment and principal amounts of each loan. The model utilizes historical mortgage loan performance based on DSCRs and LTV to derive probability of default and expected losses based on the economic scenario that is similar to the Company’s expectations of economic factors such as unemployment, gross domestic product growth, and interest rates. The Company determined the forecastable period to be reasonable and supportable for a period of two years beyond the end of the reporting period. Over the following one-year period, the model reverts to the historical performance of the portfolio for the remainder of the contractual term of the loans. In cases where the Company does not have an appropriate length of historical performance, the relevant historical rate from an index or the lifetime expected credit loss calculated from the model may be used.

Unfunded commitments are included in the model and an ACL is determined accordingly. Credit loss estimates are pooled by property type and the Company does not include accrued interest in the determination of ACL.

For individual loans or for types of loans for which the third-party model is deemed not suitable, the Company utilizes relevant current market data, industry data, and publicly available historical loss rates to calculate an estimate of the lifetime expected credit loss.

Mortgage loans on real estate deemed uncollectible are charged against the ACL, and subsequent recoveries, if any, are credited to the ACL, limited to the aggregate of amounts previously charged-off and expected to be charged-off. Mortgage loans on real estate are presented net of the allowance for credit losses on the Condensed Consolidated Balance Sheets.

The following table provides a summary of the allowance for credit losses in the Company’s mortgage loan portfolios (in millions):

Three Months Ended September 30, 2022	Apartment		Hotel		Office		Retail		Warehouse		Residential Mortgage		Total
Balance at July 1, 2022	$	21	$	18	$	16	$	13	$	9	$	3	$	80
Charge offs, net of recoveries	—		—		—		—		—		—		—
Provision (release)	(5)		(1)		(3)		8		—		—		(1)
Balance at September 30, 2022 (1)	$	16	$	17	$	13	$	21	$	9	$	3	$	79

Three Months Ended September 30, 2021	Apartment		Hotel		Office		Retail		Warehouse		Residential Mortgage		Total
Balance at July 1, 2021	$	26	$	33	$	20	$	23	$	12	$	21	$	135
Charge offs, net of recoveries	—		—		—		—		—		—		—
Provision (release)	(5)		(18)		3		(7)		(1)		(11)		(39)
Balance at September 30, 2021 (1)	$	21	$	15	$	23	$	16	$	11	$	10	$	96

Nine Months Ended September 30, 2022	Apartment		Hotel		Office		Retail		Warehouse		Residential Mortgage		Total
Balance at January 1, 2022	$	19	$	9	$	28	$	17	$	12	$	9	$	94
Charge offs, net of recoveries	—		—		—		—		—		—		—
Provision (release)	(3)		8		(15)		4		(3)		(6)		(15)
Balance at September 30, 2022 (1)	$	16	$	17	$	13	$	21	$	9	$	3	$	79

Nine Months Ended September 30, 2021	Apartment		Hotel		Office		Retail		Warehouse		Residential Mortgage		Total
Balance at January 1, 2021	$	58	$	34	$	25	$	24	$	24	$	14	$	179
Charge offs, net of recoveries	—		—		—		—		—		—		—
Provision (release)	(37)		(19)		(2)		(8)		(13)		(4)		(83)
Balance at September 30, 2021 (1)	$	21	$	15	$	23	$	16	$	11	$	10	$	96

(1) Accrued interest receivable totaled $46 million and $48 million as of September 30, 2022 and 2021, respectively, and was excluded from the determination of credit losses.

The Company’s mortgage loans that are current and in good standing are accruing interest. Interest is not accrued on loans greater than 90 days delinquent and in process of foreclosure, when deemed uncollectible. Delinquency status is determined from the date of the first missed contractual payment.

At September 30, 2022, there was $17 million of recorded investment, $18 million of unpaid principal balance, no related loan allowance, $15 million of average recorded investment, and no investment income recognized on impaired residential mortgage loans.

At December 31, 2021, there was $6 million of recorded investment, $7 million of unpaid principal balance, no related loan allowance, $2 million of average recorded investment, and no investment income recognized on impaired residential mortgage loans.

The following tables provide information about the credit quality with vintage year and category of mortgage loans (in millions):

	September 30, 2022
	2022		2021		2020		2019		2018		Prior		Revolving Loans		Total		% of Total
Commercial mortgage loans
Loan to value ratios:
Less than 70%	$	518	$	1,288	$	1,305	$	1,528	$	1,458	$	3,637	$	4	$	9,738	93	%
70% - 80%	80		342		44		14		52		143		—		675		6	%
80% - 100%	—		—		—		25		4		—		—		29		—	%
Greater than 100%	—		—		—		—		—		9		—		9		—	%
Total commercial mortgage loans	598		1,630		1,349		1,567		1,514		3,789		4		10,451		100	%
Debt service coverage ratios:
Greater than 1.20x	548		1,071		957		1,439		1,345		3,456		4		8,820		84	%
1.00x - 1.20x	50		427		250		84		35		185		—		1,031		10	%
Less than 1.00x	—		132		142		44		134		148		—		600		6	%
Total commercial mortgage loans	598		1,630		1,349		1,567		1,514		3,789		4		10,451		100	%
Residential mortgage loans
Performing	473		256		227		19		14		218		—		1,207		94	%
Nonperforming (2)	2		3		11		5		6		46		—		73		6	%
Total residential mortgage loans	475		259		238		24		20		264		—		1,280		100	%
Total mortgage loans	$	1,073	$	1,889	$	1,587	$	1,591	$	1,534	$	4,053	$	4	$	11,731	100	%

	December 31, 2021
	2021		2020		2019		2018		2017		Prior		Revolving Loans		Total		% of Total
Commercial mortgage loans
Loan to value ratios:
Less than 70%	$	1,270	$	1,346	$	1,592	$	1,599	$	1,305	$	2,703	$	4	$	9,819	93	%
70% - 80%	345		35		—		52		85		153		—		670		6	%
80% - 100%	—		—		39		5		—		—		—		44		—	%
Greater than 100%	—		—		—		—		—		10		—		10		—	%
Total commercial mortgage loans	1,615		1,381		1,631		1,656		1,390		2,866		4		10,543		100	%
Debt service coverage ratios:
Greater than 1.20x	796		974		1,532		1,293		1,257		2,609		4		8,465		80	%
1.00x - 1.20x	651		329		81		90		11		68		—		1,230		12	%
Less than 1.00x	168		78		18		273		122		189		—		848		8	%
Total commercial mortgage loans	1,615		1,381		1,631		1,656		1,390		2,866		4		10,543		100	%
Residential mortgage loans
Performing	268		22		18		16		7		396		—		727		77	%
Nonperforming (2)	4		44		22		19		23		100		—		212		23	%
Total residential mortgage loans	272		66		40		35		30		496		—		939		100	%
Total mortgage loans	$	1,887	$	1,447	$	1,671	$	1,691	$	1,420	$	3,362	$	4	$	11,482	100	%

	September 30, 2022
	In Good Standing (1)		Restructured		Greater than 90 Days Delinquent		In the Process of Foreclosure		Total Carrying Value
Apartment	$	3,775	$	—	$	—	$	—	$	3,775
Hotel	1,025		—		—		—		1,025
Office	1,885		—		—		—		1,885
Retail	2,093		—		—		—		2,093
Warehouse	1,673		—		—		—		1,673
Total commercial	10,451		—		—		—		10,451
Residential (2)	1,207		—		56		17		1,280
Total	$	11,658	$	—	$	56	$	17	$	11,731

	December 31, 2021
	In Good Standing (1)		Restructured		Greater than 90 Days Delinquent		In the Process of Foreclosure		Total Carrying Value
Apartment	$	3,755	$	—	$	—	$	—	$	3,755
Hotel	1,054		—		—		—		1,054
Office	1,889		—		—		—		1,889
Retail	2,104		—		—		—		2,104
Warehouse	1,741		—		—		—		1,741
Total commercial	10,543		—		—		—		10,543
Residential (2)	727		—		206		6		939
Total	$	11,270	$	—	$	206	$	6	$	11,482

(1)     At September 30, 2022 and December 31, 2021, includes mezzanine loans of $379 million and $278 million in the Apartment category, $41 million and $75 million in the Hotel category, $237 million and $252 million in the Office category, $27 million and $27 million in the Retail category, and $56 million and $26 million in the Warehouse category, respectively.

(2)    At September 30, 2022 and December 31, 2021, includes $48 million and $202 million of loans purchased when the loans were greater than 90 days delinquent and $14 million and $5 million of loans in process of foreclosure, and are supported with insurance or other guarantees provided by various governmental programs, respectively.

As of September 30, 2022 and December 31, 2021, there were no commercial mortgage loans involved in troubled debt restructuring, and stressed mortgage loans for which the Company is dependent, or expects to be dependent, on the underlying property to satisfy repayment were $4 million and nil, respectively.

Other Invested Assets

Other invested assets primarily include investments in Federal Home Loan Bank capital stock, limited partnerships (“LPs”), and real estate. Federal Home Loan Bank capital stock is carried at cost and adjusted for any impairment. At September 30, 2022 and December 31, 2021, FHLB capital stock had carrying value of $146 million and $125 million, respectively. Real estate is carried at the lower of depreciated cost or fair value. At September 30, 2022 and December 31, 2021, real estate totaling $238 million and $243 million, respectively, included foreclosed properties with a book value of nil and $1 million at September 30, 2022 and December 31, 2021, respectively. Carrying values for limited partnership investments are generally determined by using the proportion of the Company’s investment in each fund (Net Asset Value (“NAV”) equivalent) as a practical expedient for fair value, and generally are recorded on a three-month lag, with changes in value included in net investment income. At September 30, 2022 and December 31, 2021, investments in LPs had carrying values of $3,238 million and $2,831 million, respectively.

In June 2021, the Company entered into an arrangement to sell $420 million of limited partnership investments, of which $236 million and $168 million were sold in the second and third quarter of 2021, respectively, and the remainder was sold in January 2022. The LPs sold were carried at estimated sales price. The Company expects to reinvest in new LPs as attractive opportunities become available.

Securities Lending

The Company has entered into securities lending agreements with agent banks whereby blocks of securities are loaned to third parties, primarily major brokerage firms. As of September 30, 2022 and December 31, 2021, the estimated fair value of loaned securities was $25 million and $17 million, respectively. The agreements require a minimum of 102% of the fair value of the loaned securities to be held as collateral, calculated daily. To further minimize the credit risks related to these programs, the financial condition of counterparties is monitored on a regular basis. At September 30, 2022 and December 31, 2021, cash collateral received in the amount of $27 million and $17 million, respectively, was invested by the agent banks and included in cash and cash equivalents of the Company. A securities lending payable for the overnight and continuous loans is included in liabilities in the amount of cash collateral received. Securities lending transactions are used to generate income. Income and expenses associated with these transactions are reported as net investment income.

Repurchase Agreements

The Company routinely enters into repurchase agreements whereby the Company agrees to sell and repurchase securities. These agreements are accounted for as financing transactions, with the assets and associated liabilities included in the Condensed Consolidated Balance Sheets. Short-term borrowings under such agreements averaged $186 million for nine months ended September 30, 2022 and $1,548 million for the year ended December 31, 2021, with weighted average interest rates of 0.24% and 0.07%, respectively. At September 30, 2022 and December 31, 2021, the outstanding repurchase agreement balance was nil and $1,572 million, respectively, collateralized with U.S. Treasury notes and corporate securities and maturing within 30 days, and was included within repurchase agreements and securities lending payable in the Condensed Consolidated Balance Sheets. In the event of a decline in the fair value of the pledged collateral under these agreements, the Company may be required to transfer cash or additional securities as pledged collateral. Interest expense totaled nil both for the three and nine months ended September 30, 2022, respectively, and nil and $1 million for the three and nine months ended September 30, 2021. The highest level of short-term borrowings at any month end was $584 million and $2,349 million for the nine months ended September 30, 2022 and 2021, respectively.

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Derivative Instruments

9 Months Ended

Sep. 30, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments

Derivative Instruments

The Company’s business model includes the acceptance, monitoring and mitigation of risk. Specifically, the Company considers, among other factors, exposures to interest rate and equity market movements, foreign exchange rates and other asset or liability prices. The Company uses derivative instruments to mitigate or reduce these risks in accordance with established policies and goals. The Company’s derivative holdings, while effective in managing defined risks, are not structured to meet accounting requirements to be designated as hedging instruments. As a result, freestanding derivatives are carried at fair value with changes recorded in net gains (losses) on derivatives and investments.

A summary of the aggregate contractual or notional amounts and fair values of the Company’s freestanding and embedded derivative instruments are as follows (in millions):

	September 30, 2022
	Contractual/		Assets		Liabilities		Net
	Notional		Fair		Fair		Fair Value
	Amount (1)		Value		Value		Asset (Liability)
Freestanding derivatives
Cross-currency swaps	$	1,825	$	92	$	166	$	(74)
Equity index call options	15,500		27		—		27
Equity index futures (2)	28,891		—		—		—
Equity index put options	33,000		1,564		—		1,564
Interest rate swaps	7,728		4		238		(234)
Interest rate swaps - cleared (2)	1,500		—		—		—
Put-swaptions	22,000		—		1,781		(1,781)
Interest rate futures (2)	55,071		—		—		—
Total return swaps	739		80		—		80
Total freestanding derivatives	166,254		1,767		2,185		(418)
Embedded derivatives
Variable annuity embedded derivatives (3)	N/A		484		—		484
Fixed index annuity embedded derivatives (4)	N/A		—		967		(967)
Registered index linked annuity embedded derivatives (4)	N/A		—		10		(10)
Total embedded derivatives	N/A		484		977		(493)
Derivatives related to funds withheld under reinsurance treaties
Cross-currency swaps	158		32		—		32
Cross-currency forwards	1,460		151		40		111
Funds withheld embedded derivative (5)	N/A		3,332		—		3,332
Total derivatives related to funds withheld under reinsurance treaties	1,618		3,515		40		3,475
Total	$	167,872	$	5,766	$	3,202	$	2,564

(1) The notional amount for swaps and swaptions represents the stated principal balance used as a basis for calculating payments. The contractual amount for futures and options represents the market exposure of open positions.

(2) Variation margin is considered settlement resulting in the netting of cash received/paid for variation margin against the fair value of the trades.

(3) Included within reserves for future policy benefits and claims payable on the Condensed Consolidated Balance Sheets. The nonperformance risk adjustment is included in the balance above.

(4) Included within other contract holder funds on the Condensed Consolidated Balance Sheets. The nonperformance risk adjustment is included in the balance above.

(5) Included within funds withheld payable under reinsurance treaties on the Condensed Consolidated Balance Sheets.

	December 31, 2021
	Contractual/		Assets		Liabilities		Net
	Notional		Fair		Fair		Fair Value
	Amount (1)		Value		Value		Asset (Liability)
Freestanding derivatives
Cross-currency swaps	$	1,767	$	55	$	35	$	20
Equity index call options	21,000		606		—		606
Equity index futures (2)	18,258		—		—		—
Equity index put options	27,500		150		—		150
Interest rate swaps	7,728		430		—		430
Interest rate swaps - cleared (2)	1,500		—		—		—
Put-swaptions	19,000		133		—		133
Interest rate futures (2)	912		—		—		—
Total return swaps	—		—		—		—
Total freestanding derivatives	97,665		1,374		35		1,339
Embedded derivatives
Variable annuity embedded derivatives (3)	N/A		—		2,626		(2,626)
Fixed index annuity embedded derivatives (4)	N/A		—		1,439		(1,439)
Registered index linked annuity embedded derivatives (4)	N/A		—		6		(6)
Total embedded derivatives	N/A		—		4,071		(4,071)
Derivatives related to funds withheld under reinsurance treaties
Cross-currency swaps	158		10		1		9
Cross-currency forwards	1,119		33		5		28
Funds withheld embedded derivative (5)	N/A		—		120		(120)
Total derivatives related to funds withheld under reinsurance treaties	1,277		43		126		(83)
Total	$	98,942	$	1,417	$	4,232	$	(2,815)

(1) The notional amount for swaps and swaptions represents the stated principal balance used as a basis for calculating payments. The contractual amount for futures and options represents the market exposure of open positions.

(2) Variation margin is considered settlement resulting in the netting of cash received/paid for variation margin against the fair value of the trades.

(3) Included within reserves for future policy benefits and claims payable on the Condensed Consolidated Balance Sheets. The nonperformance risk adjustment is included in the balance above.

(4) Included within other contract holder funds on the Condensed Consolidated Balance Sheets. The nonperformance risk adjustment is included in the balance above.

(5) Included within funds withheld payable under reinsurance treaties on the Condensed Consolidated Balance Sheets.

The following table reflects the results of the Company’s derivatives, including gains (losses) and change in fair value of freestanding derivative instruments and embedded derivatives (in millions):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Derivatives excluding funds withheld under reinsurance treaties
Cross-currency swaps	$	(19)	$	(9)	$	(101)	$	(53)
Equity index call options	(275)		16		(1,506)		814
Equity index futures	1,038		(196)		5,279		(2,866)
Equity index put options	168		(71)		675		(682)
Interest rate swaps	(202)		—		(613)		(148)
Interest rate swaps - cleared	(67)		(10)		(204)		(60)
Put-swaptions	(751)		(62)		(1,905)		42
Interest rate futures	(179)		(123)		(491)		(896)
Total return swaps	39		—		47		—
Fixed index annuity embedded derivatives	—		(1)		5		(3)
Registered index linked annuity embedded derivative	58		—		121		—
Variable annuity embedded derivatives	1,060		(845)		3,055		2,439
Total net gains (losses) on derivative instruments excluding derivative instruments related to funds withheld under reinsurance treaties	870		(1,301)		4,362		(1,413)
Derivatives related to funds withheld under reinsurance treaties
Cross-currency swaps	9		6		24		11
Cross-currency forwards	67		28		136		42
Funds withheld embedded derivative	824		101		3,452		555
Total net gains (losses) on derivative instruments related to funds withheld under reinsurance treaties	900		135		3,612		608
Total net gains (losses) on derivative instruments including derivative instruments related to funds withheld under reinsurance treaties	$	1,770	$	(1,166)	$	7,974	$	(805)

All the Company’s trade agreements for freestanding, over-the-counter derivatives, contain credit downgrade provisions that allow a party to assign or terminate derivative transactions if the counterparty’s credit rating declines below an established limit. At September 30, 2022 and December 31, 2021, the fair value of the Company’s net non-cleared, over-the-counter derivative assets by counterparty were $1,453 million and $1,376 million, respectively, and held collateral was $1,343 million and $1,576 million, respectively, related to these agreements. At September 30, 2022 and December 31, 2021, the fair value of the Company’s net non-cleared, over-the-counter derivative liabilities by counterparty were $1,728 million and nil, respectively, and provided collateral was $1,707 million and nil, respectively, related to these agreements. If all the downgrade provisions had been triggered at September 30, 2022 and December 31, 2021, in aggregate, the Company would have had to disburse $21 million and $200 million, respectively, and would have been allowed to claim $110 million and nil, respectively.

Offsetting Assets and Liabilities

The Company’s derivative instruments, repurchase agreements and securities lending agreements are subject to master netting arrangements and collateral arrangements. A master netting arrangement with a counterparty creates a right of offset for amounts due to and due from that same counterparty that is enforceable in the event of a default or bankruptcy. The Company recognizes amounts subject to master netting arrangements on a gross basis within the Condensed Consolidated Balance Sheets.

The following tables present the gross and net information about the Company’s financial instruments subject to master netting arrangements (in millions):

	September 30, 2022
	Gross Amounts Recognized		Gross Amounts Offset in the Condensed Consolidated Balance Sheets		Net Amounts Presented in the Condensed Consolidated Balance Sheets
							Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets
							Financial Instruments (1)		Cash Collateral		Securities Collateral (2)		Net Amount
Financial Assets:
Freestanding derivative
assets	$	1,950	$	—	$	1,950	$	496	$	1,031	$	310	$	113
Financial Liabilities:
Freestanding derivative
liabilities	$	2,225	$	—	$	2,225	$	496	$	313	$	1,365	$	51
Securities loaned	27		—		27		—		27		—		—
Repurchase agreements	—		—		—		—		—		—		—
Total financial liabilities	$	2,252	$	—	$	2,252	$	496	$	340	$	1,365	$	51

(1) Represents the amount that could be offset under master netting or similar arrangements that management elects not to offset on the Condensed Consolidated Balance Sheets.

(2) Excludes initial margin amounts for exchange-traded derivatives.

	December 31, 2021
	Gross Amounts Recognized		Gross Amounts Offset in the Condensed Consolidated Balance Sheets		Net Amounts Presented in the Condensed Consolidated Balance Sheets
							Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets
							Financial Instruments (1)		Cash Collateral		Securities Collateral (2)		Net Amount
Financial Assets:
Freestanding derivative
assets	$	1,417	$	—	$	1,417	$	41	$	817	$	555	$	4
Financial Liabilities:
Freestanding derivative
liabilities	$	41	$	—	$	41	$	41	$	—	$	—	$	—
Securities loaned	17		—		17		—		17		—		—
Repurchase agreements	1,572		—		1,572		—		—		1,572		—
Total financial liabilities	$	1,630	$	—	$	1,630	$	41	$	17	$	1,572	$	—

(1) Represents the amount that could be offset under master netting or similar arrangements that management elects not to offset on the Condensed Consolidated Balance Sheets.

(2) Excludes initial margin amounts for exchange-traded derivatives.

In the above tables, the amounts of assets or liabilities presented in the Company’s Condensed Consolidated Balance Sheets are offset first by financial instruments that have the right of offset under master netting or similar arrangements with any remaining amount reduced by the amount of cash and securities collateral. The actual amount of collateral may be greater than amounts presented in the tables. The above tables exclude net embedded derivative liabilities of $493 million and $4,071 million as of September 30, 2022 and December 31, 2021, respectively, as these derivatives are not subject to master netting arrangements. The above tables also exclude the funds withheld embedded derivative asset (liability) of $3,332 million and $(120) million at September 30, 2022 and December 31, 2021.

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Fair Value Measurements

9 Months Ended

Sep. 30, 2022

Fair Value Disclosures [Abstract]

Fair Value Measurements

Fair Value Measurements

The following table summarizes the fair value and carrying value of the Company’s financial instruments (in millions):

		September 30, 2022				December 31, 2021
		Carrying Value		Fair Value		Carrying Value		Fair Value
Assets
	Debt securities (1)	$	43,907	$	43,907	$	53,375	$	53,375
	Equity securities	234		234		279		279
	Mortgage loans (1)	11,731		11,093		11,482		11,910
	Limited partnerships	3,238		3,238		2,831		2,831
	Policy loans (1)	4,446		4,446		4,475		4,475
	Freestanding derivative instruments	1,950		1,950		1,417		1,417
	Federal Home Loan Bank of Indianapolis ("FHLBI") capital stock	146		146		125		125
	Cash and cash equivalents	5,331		5,331		2,623		2,623
	Guaranteed minimum income benefits ("GMIB") reinsurance recoverable	207		207		262		262
	Separate account assets	185,042		185,042		248,949		248,949
Liabilities
	Annuity reserves (2)	37,390		32,592		40,389		50,116
	Reserves for guaranteed investment contracts (3)	1,162		1,124		894		923
	Trust instruments supported by funding agreements (3)	4,944		4,765		5,986		6,175
	FHLB funding agreements (3)	2,252		2,385		1,950		1,938
	Funds withheld payable under reinsurance treaties (1)	23,900		23,900		29,007		29,007
	Long-term debt	2,634		2,339		2,649		2,745
	Securities lending payable	27		27		17		17
	Freestanding derivative instruments	2,225		2,225		41		41
	Notes issued by consolidated VIEs	1,745		1,745		1,404		1,404
	Repurchase agreements	—		—		1,572		1,572
	Separate account liabilities	185,042		185,042		248,949		248,949
(1) Includes items carried at fair value under the fair value option and trading securities. (2) Annuity reserves represent only the components of other contract holder funds and reserves for future policy benefits and claims payable that are considered to be financial instruments. (3) Included as a component of other contract holder funds on the Condensed Consolidated Balance Sheets.

The following is a discussion of the methodologies used to determine fair values of the financial instruments measured on both a recurring and nonrecurring basis reported in the following tables.

Debt and Equity Securities

The fair values for debt and equity securities are determined using information available from independent pricing services, broker-dealer quotes, or internally derived estimates. Priority is given to publicly available prices from independent sources, when available. Securities for which the independent pricing service does not provide a quotation are either submitted to independent broker-dealers for prices or priced internally. Typical inputs used by these three pricing methods include reported trades, benchmark yields, credit spreads, liquidity premiums and/or estimated cash flows based on default and prepayment assumptions.

As a result of typical trading volumes and the lack of specific quoted market prices for most debt securities, independent pricing services will normally derive the security prices through recently reported trades for identical or similar securities, making adjustments through the reporting date based upon available market observable information as outlined above. If there are no recently reported trades, the independent pricing services and broker-dealers may use matrix or pricing model processes to develop a security price where future cash flow expectations are developed based upon collateral performance and discounted at relevant market rates. Certain securities are priced using broker-dealer quotes, which may utilize

proprietary inputs and models. Additionally, the majority of these quotes are non-binding.

Included in the pricing of asset-backed securities are estimates of the rate of future prepayments of principal over the remaining life of the securities. Such estimates are derived based on the characteristics of the underlying structure and prepayment assumptions believed to be relevant for the underlying collateral. Actual prepayment experience may vary from these estimates.

Internally derived estimates may be used to develop a fair value for securities for which the Company is unable to obtain either a reliable price from an independent pricing service or a suitable broker-dealer quote. These fair value estimates may incorporate Level 2 and Level 3 inputs and are generally derived using expected future cash flows, discounted at market interest rates available from market sources based on the credit quality and duration of the instrument. For securities that may not be reliably priced using these internally developed pricing models, a fair value may be estimated using indicative market prices. These prices are indicative of an exit price, but the assumptions used to establish the fair value may not be observable or corroborated by market observable information and, therefore, represent Level 3 inputs.

The Company performs an analysis on the prices and credit spreads received from third parties to ensure that the prices represent a reasonable estimate of the fair value. This process involves quantitative and qualitative analysis and is overseen by investment and accounting professionals. Examples of procedures performed include initial and ongoing review of third-party pricing service methodologies, review of pricing statistics and trends, back testing recent trades and monitoring of trading volumes. In addition, the Company considers whether prices received from independent broker-dealers represent a reasonable estimate of fair value using internal and external cash flow models, which are developed based on spreads and, when available, market indices. As a result of this analysis, if the Company determines there is a more appropriate fair value based upon the available market data, the price received from the third party may be adjusted accordingly.

For those securities that were internally valued at September 30, 2022 and December 31, 2021, the pricing model used by the Company utilizes current spread levels of similarly rated securities to determine the market discount rate for the security. Furthermore, appropriate risk premiums for illiquidity and non-performance are incorporated in the discount rate. Cash flows, as estimated by the Company using issuer-specific default statistics and prepayment assumptions, are discounted to determine an estimated fair value. 

On an ongoing basis, the Company reviews the independent pricing services’ valuation methodologies and related inputs and evaluates the various types of securities in its investment portfolio to determine an appropriate fair value hierarchy distribution based upon trading activity and the observability of market inputs. Based on the results of this evaluation, each price is classified into Level 1, 2, or 3. Most prices provided by independent pricing services, including broker-dealer quotes, are classified into Level 2 due to their use of market observable inputs.

Limited Partnerships

Fair values for limited partnership interests, which are included in other invested assets, is generally determined using the proportion of the Company’s investment in the value of the net assets of each fund (“NAV equivalent”) as a practical expedient for fair value, and generally, are recorded on a three-month lag. No adjustments to these amounts were deemed necessary at September 30, 2022 and December 31, 2021. As a result of using the net asset value per share practical expedient, limited partnership interests are not classified in the fair value hierarchy.

The Company’s limited partnership interests are not redeemable and distributions received are generally the result of liquidation of the underlying assets of the partnerships. The Company generally has the ability under the partnership agreements to sell its interest to another limited partner with the prior written consent of the general partner. In cases when the Company expects to sell the limited partnership interest, the estimated sales price is used to determine the fair value rather than the practical expedient. These limited partnership interests are classified as Level 2 in the fair value hierarchy.

In cases when a limited partnership’s financial statements are unavailable and a NAV equivalent is not available or practical, an internally developed model is used to determine fair value for that fund. These investments are classified as Level 3 in the fair value hierarchy.

Policy Loans

Policy loans are funds provided to policyholders in return for a claim on the policies values and function like demand deposits which are redeemable upon repayment, death or surrender, and there is only one market price at which the transaction could be settled – the then current carrying value. The funds provided are limited to the cash surrender value of the underlying policy. The nature of policy loans is to have a negligible default risk as the loans are fully collateralized by the value of the policy. Policy loans do not have a stated maturity and the balances and accrued interest are repaid either by the policyholder or with proceeds from the policy. Due to the collateralized nature of policy loans and unpredictable timing of payments, the Company believes the carrying value of policy loans approximates fair value. The reinsurance related component of policy loans at fair value under the fair value option have been classified as Level 3 within the fair value hierarchy.

Freestanding Derivative Instruments

Freestanding derivative instruments are reported at fair value, which reflects the estimated amounts, net of payment accruals, which the Company would receive or pay upon sale or termination of the contracts at the reporting date. Changes in fair value are included in net gains (losses) on derivatives and investments. Freestanding derivatives priced using third party pricing services incorporate inputs that are predominantly observable in the market. Inputs used to value derivatives include interest rate swap curves, credit spreads, interest rates, counterparty credit risk, equity volatility and equity index levels.

Freestanding derivative instruments classified as Level 1 include futures, which are traded on active exchanges. Freestanding derivative instruments classified as Level 2 include interest rate swaps, cross currency swaps, cross-currency forwards, credit default swaps, total return swaps, put-swaptions and certain equity index call and put options. These derivative valuations are determined by third-party pricing services using pricing models with inputs that are observable in the market or can be derived principally from, or corroborated by, observable market data. Freestanding derivative instruments classified as Level 3 include interest rate contingent options that are valued by third-party pricing services utilizing significant unobservable inputs.

Cash and Cash Equivalents

Cash and cash equivalents primarily include money market instruments and bank deposits. Cash equivalents also includes all highly liquid securities and other investments purchased with an original or remaining maturity of three months or less at the date of purchase. Certain money market instruments are valued using unadjusted quoted prices in active markets and are classified as Level 1.

Funds Withheld Payable Under Reinsurance Treaties

The funds withheld payable under reinsurance treaties includes both the funds withheld payable which are held at fair value under the fair value option and the funds withheld embedded derivative liability. The fair value of the funds withheld payable which are held at fair value under the fair value option is equal to the fair value of the assets held as collateral, which primarily consists of policy loans using industry standard valuation techniques. The funds withheld embedded derivative liability is determined based upon a total return swap technique referencing the fair value of the investments held under the reinsurance contract and requires certain significant unobservable inputs. The funds withheld payable which are held at fair value under the fair value option and the funds withheld embedded derivative are considered Level 3 in the fair value hierarchy.

Separate Account Assets

Separate account assets are comprised of investments in mutual funds that transact regularly, but do not trade in active markets as they are not publicly available, and, are categorized as Level 2 assets.

Variable Annuity Guarantees

Variable annuity contracts issued by the Company offer various guaranteed minimum death, withdrawal, income and accumulation benefits. Certain benefits, including non-life contingent components of guaranteed minimum withdrawal benefits (“GMWB”) and guaranteed minimum withdrawal benefits for life (“GMWB for Life”), guaranteed minimum accumulation benefits (“GMAB”), and the reinsurance recoverable on the Company’s GMIB, are recorded at fair value. Guaranteed benefits that are not subject to fair value accounting are accounted for as insurance benefits. The Company discontinued offering the GMIB in 2009 and GMAB in 2011.

GMABs and non-life contingent components of GMWB and GMWB for Life contracts are recorded at fair value with changes in fair value recorded in net gains (losses) on derivatives and investments. The fair value of the reserve is based on the expectations of future benefit payments and certain future fees associated with the benefits. At the inception of the contract, the Company attributes to the embedded derivative a portion of rider fees collected from the contract holder, which is then held static in future valuations. Those fees, generally referred to as the attributed fees, are set such that the present value of the attributed fees is equal to the present value of future claims expected to be paid under the guaranteed benefit at the inception of the contract. In subsequent valuations, both the present value of future benefits and the present value of attributed fees are revalued based on current market conditions and policyholder behavior assumptions. The difference between each of the two components represents the fair value of the embedded derivative. Thus, when unfavorable equity market movements cause declines in the contract holder’s account value relative to the guarantee benefit, the valuation of future expected claims would generally increase relative to the measurement performed at the inception of the contract, resulting in an increase in the fair value of the embedded derivative liability (and vice versa).

The Company’s GMIB book is reinsured through an unrelated party, and due to the net settlement provisions of the reinsurance agreement, this contract meets the definition of a derivative. Accordingly, the GMIB reinsurance agreement is recorded at fair value, with changes in fair value recorded in net gains (losses) on derivatives and investments. Due to the inability to economically reinsure or hedge new issues of the GMIB, the Company discontinued offering the benefit in 2009.

Fair values for GMWB, GMWB for Life, and GMAB embedded derivatives, as well as GMIB reinsurance recoverables, are calculated using internally developed models because active, observable markets do not exist for those guaranteed benefits.

The fair value calculation is based on the present value of future cash flows comprised of future expected benefit payments, less future attributed rider fees, over the lives of the contracts. Estimating these cash flows requires numerous estimates and subjective judgments related to capital market inputs, as well as actuarially determined assumptions related to expectations concerning policyholder behavior. Capital market inputs include expected market rates of return, market volatility, correlations of market index returns to funds, fund performance and discount rates. The more significant actuarial assumptions include benefit utilization by policyholders, lapse, mortality, and withdrawal rates. Best estimate assumptions plus risk margins are used as applicable.

At each valuation date, the fair value calculation reflects expected returns based on the greater of LIBOR swap rates and constant maturity treasury rates as of that date to determine the value of expected future cash flows produced in a stochastic process. Volatility assumptions are based on a weighting of available market data for implied market volatility for durations up to 10 years, grading to a historical volatility level by year 15, where such long-term historical volatility levels contain an explicit risk margin. Additionally, non-performance risk is incorporated into the calculation by using discount rates based on a blend of yields on similarly-rated peer debt and yields on JFI debt (adjusted to operating company levels). Risk margins are also incorporated into the model assumptions, particularly for policyholder behavior. Estimates of future policyholder behavior are subjective and are based primarily on the Company’s experience.

As markets change, mature and evolve and actual policyholder behavior emerges, management continually evaluates the appropriateness of its assumptions for this component of the fair value model.

The use of the models and assumptions described above requires a significant amount of judgment. Management believes the aggregation of each of these components results in an amount that the Company would be required to transfer for a liability, or receive for an asset, to or from a willing buyer or seller, if one existed, for those market participants to assume the risks associated with the guaranteed benefits and the related reinsurance. However, the ultimate settlement amount of the asset or liability, which is currently unknown, could likely be significantly different than this fair value.

Fixed Index Annuities

The fair value of the fixed index annuities embedded option, incorporating such factors as the volatility of returns, the level of interest rates and the time remaining until the option expires, is calculated using the closed form Black-Scholes Option Pricing model or Monte Carlo simulations, as appropriate for the type of option. Additionally, assumed withdrawal rates are used to estimate the expected volume of embedded options that will be realized by policyholders.

RILA

The fair value of the RILA embedded option, incorporating such factors as the volatility of returns, the level of interest rates and the time remaining until the option expires, is calculated using the closed form Black-Scholes Option Pricing model. Additionally, assumed withdrawal rates are used to estimate the expected volume of embedded options that will be realized by policyholders.

Notes Issued by Consolidated VIEs

These notes, at fair value under the fair value option, are based on the fair values of corresponding fixed maturity collateral. The CLO liabilities are also reduced by the fair value of the beneficial interest the Company retains in the CLO and the carrying value of any beneficial interests that represent compensation for services. As the notes are valued based on the reference collateral, they are classified as Level 2.

Fair Value Option

The Company elected the fair value option for debt securities related to certain consolidated investments totaling $1,965 million and $1,546 million at September 30, 2022 and December 31, 2021, respectively. These debt securities are reflected on the Company’s Condensed Consolidated Balance Sheets as debt securities, at fair value under the fair value option.

The Company has elected the fair value option for certain funds withheld assets, which are held as collateral for reinsurance, totaling $4,152 million and $3,632 million at September 30, 2022 and December 31, 2021, respectively, as discussed above, and includes mortgage loans as discussed below.

The Company elected the fair value option for certain mortgage loans held under the funds withheld reinsurance agreement. The fair value option was elected for these mortgage loans, purchased or funded after December 31, 2021, to mitigate inconsistency in earnings that would otherwise result between these mortgage loan assets and the funds withheld liability, including the associated embedded derivative, and are valued using third-party pricing services. Changes in fair value are reflected in net investment income on the Condensed Consolidated Income Statements.

The fair value and aggregate contractual principal for mortgage loans where the fair value option was elected after December 31, 2021, were as follows (in millions):

	September 30,
	2022
Fair value	$	508
Aggregate contractual principal	520

As of September 30, 2022, no loans for which the fair value option was elected were in non-accrual status, and no loans were more than 90 days past due and still accruing interest.

The Company elected the fair value option for notes issued by consolidated VIEs totaling $1,745 million and $1,404 million at September 30, 2022 and December 31, 2021, respectively.

Income and changes in unrealized gains and losses on other assets for which the Company has elected the fair value option are immaterial to the Company’s Condensed Consolidated Financial Statements.

Assets and Liabilities Measured at Fair Value on a Recurring Basis

The following tables summarize the Company’s assets and liabilities that are carried at fair value by hierarchy levels (in millions):

		September 30, 2022
		Total		Level 1		Level 2		Level 3
Assets
	Debt securities
	U.S. government securities	$	4,056	$	3,512	$	544	$	—
	Other government securities	1,449		—		1,449		—
	Public utilities	5,109		—		5,109		—
	Corporate securities	25,395		—		25,318		77
	Residential mortgage-backed	455		—		455		—
	Commercial mortgage-backed	1,645		—		1,645		—
	Other asset-backed securities	5,798		—		5,798		—
	Equity securities	234		16		111		107
	Mortgage loans	508		—		—		508
	Limited partnerships (1)	1		—		—		1
	Policy loans	3,487		—		—		3,487
	Freestanding derivative instruments	1,950		—		1,950		—
	Cash and cash equivalents	5,331		5,331		—		—
	GMIB reinsurance recoverable	207		—		—		207
	Separate account assets	185,042		—		185,042		—
	Total	$	240,667	$	8,859	$	227,421	$	4,387
Liabilities
	Embedded derivative liabilities (2)	$	493	$	—	$	977	$	(484)
	Funds withheld payable under reinsurance treaties (3)	314		—		—		314
	Freestanding derivative instruments	2,225		—		2,225		—
	Notes issued by consolidated VIEs	1,745		—		1,745		—
	Total	$	4,777	$	—	$	4,947	$	(170)
	(1) Excludes $3,237 million of limited partnership investments measured at NAV.
	(2) Includes the embedded derivative of $(484) million related to GMWB reserves included in reserves for future policy benefits and claims payable, liability of $10 million related to RILA and $967 million liability of fixed index annuities, both included in other contract holder funds on the Condensed Consolidated Balance Sheets.
	(3) Includes the Athene embedded derivative asset of $3,332 million and funds withheld payable under reinsurance treaties at fair value under the fair value option.

		December 31, 2021
		Total		Level 1		Level 2		Level 3
Assets
	Debt securities
	U.S. government securities	$	4,321	$	4,321	$	—	$	—
	Other government securities	1,619		—		1,619		—
	Public utilities	6,715		—		6,715		—
	Corporate securities	31,146		—		31,137		9
	Residential mortgage-backed	569		—		569		—
	Commercial mortgage-backed	2,038		—		2,038		—
	Other asset-backed securities	6,967		—		6,967		—
	Equity securities	279		111		56		112
	Limited partnerships (1)	18		—		17		1
	Policy loans	3,467		—		—		3,467
	Freestanding derivative instruments	1,417		—		1,417		—
	Cash and cash equivalents	2,623		2,623		—		—
	GMIB reinsurance recoverable	262		—		—		262
	Separate account assets	248,949		—		248,949		—
	Total	$	310,390	$	7,055	$	299,484	$	3,851
Liabilities
	Embedded derivative liabilities (2)	$	4,071	$	—	$	1,445	$	2,626
	Funds withheld payable under reinsurance treaties (3)	3,759		—		—		3,759
	Freestanding derivative instruments	41		—		41		—
	Notes issued by consolidated VIEs	1,404		—		1,404		—
	Total	$	9,275	$	—	$	2,890	$	6,385
	(1) Excludes $2,813 million of limited partnership investments measured at NAV.
	(2) Includes the embedded derivative liabilities of $2,626 million related to GMWB reserves included in reserves for future policy benefits and claims payable, $6 million of RILA and $1,439 million of fixed index annuities, both included in other contract holder funds on the Condensed Consolidated Balance Sheets.
	(3) Includes the Athene embedded derivative liability of $120 million and funds withheld payable under reinsurance treaties at fair value under the fair value option.

Assets and Liabilities Measured at Fair Value Using Significant Unobservable Inputs (Level 3)

Level 3 Assets and Liabilities by Price Source

The table below presents the balances of Level 3 assets and liabilities measured at fair value with their corresponding pricing sources (in millions):

	September 30, 2022
Assets	Total		Internal		External
Debt securities:
Corporate	$	77	$	—	$	77
Equity securities	107		—		107
Mortgage loans	508		—		508
Limited partnerships	1		1		—
Policy loans	3,487		3,487		—
GMIB reinsurance recoverable	207		207		—
Total	$	4,387	$	3,695	$	692
Liabilities
Embedded derivative liabilities (1)	$	(484)	$	(484)	$	—
Funds withheld payable under reinsurance treaties (2)	314		314		—
Total	$	(170)	$	(170)	$	—
(1) Includes the embedded derivative related to GMWB reserves.
(2) Includes the Athene embedded derivative asset of $3,332 million and funds withheld payable under reinsurance treaties at fair value under the fair value option.
	December 31, 2021
Assets	Total		Internal		External
Debt securities:
Corporate	$	9	$	—	$	9
Equity securities	112		1		111
Limited partnerships	1		1		—
Policy loans	3,467		3,467		—
GMIB reinsurance recoverable	262		262		—
Total	$	3,851	$	3,731	$	120
Liabilities
Embedded derivative liabilities (1)	$	2,626	$	2,626	$	—
Funds withheld payable under reinsurance treaties (2)	3,759		3,759		—
Total	$	6,385	$	6,385	$	—
(1) Includes the embedded derivative related to GMWB reserves.
(2) Includes the Athene embedded derivative liability of $120 million and funds withheld payable under reinsurance treaties at fair value under the fair value option.

External pricing sources for securities represent unadjusted prices from independent pricing services and independent indicative broker quotes where pricing inputs are not readily available.

Quantitative Information Regarding Internally-Priced Level 3 Assets and Liabilities

The table below presents quantitative information on significant internally-priced Level 3 assets and liabilities (in millions):

	As of September 30, 2022
	Fair Value		Valuation Technique(s)	Significant Unobservable Input(s)	Assumption or Input Range	Impact of Increase in Input on Fair Value
Assets
GMIB reinsurance recoverable	$	207	Discounted cash flow	Mortality(1)	0.01% - 23.42%	Decrease
				Lapse(2)	3.30% - 9.00%	Decrease
				Utilization(3)	0.00% - 20.00%	Increase
				Withdrawal(4)	3.75% - 4.50%	Increase
				Nonperformance risk(5)	0.00% - 2.57%	Decrease
				Long-term Equity Volatility(6)	18.50% - 23.98%	Increase
Liabilities
Embedded derivative liabilities	$	(484)	Discounted cash flow	Mortality(1)	0.04% - 21.45%	Decrease
				Lapse(2)	0.20% - 30.90%	Decrease
				Utilization(3)	5.00% - 100.00%	Increase
				Withdrawal(4)	58.00% - 97.00%	Increase
				Nonperformance risk(5)	0.00% - 2.57%	Decrease
				Long-term Equity Volatility(6)	18.50% - 23.98%	Increase

(1)    Mortality rates vary by attained age, tax qualification status, GMWB benefit election, and duration. The range displayed reflects ages from the minimum issue age for the benefit through age 95, which corresponds to the typical maturity age. A mortality improvement assumption is also applied.

(2)     Base lapse rates vary by contract-level factors, such as product type, surrender charge schedule and optional benefits election. Lapse rates are further adjusted based on the degree to which a guaranteed benefit is in-the-money, with lower lapse applying when benefits are more in-the-money. Lapse rates are also adjusted to reflect lower lapse expectations when GMWB benefits are utilized.

(3)     The utilization rate represents the expected percentage of contracts that will utilize the benefit through annuitization (GMIB) or commencement of withdrawals (GMWB). Utilization may vary by benefit type, attained age, duration, tax qualification status, benefit provision, and degree to which the guaranteed benefit is in-the-money.

(4)     The withdrawal rate represents the utilization rate of the contract’s free partial withdrawal provision (GMIB) or the percentage of annual withdrawal assumed relative to the maximum allowable withdrawal amount (GMWB). Withdrawal rates on contracts with a GMIB vary based on the product type and duration. Withdrawal rates on contracts with a GMWB vary based on attained age, tax qualification status, GMWB type and GMWB benefit provisions.

(5)    Nonperformance risk spread varies by projection year.

(6)    Long-term equity volatility represents the equity volatility beyond the period for which observable equity volatilities are available.

	As of December 31, 2021
	Fair Value		Valuation Technique(s)	Significant Unobservable Input(s)	Assumption or Input Range	Impact of Increase in Input on Fair Value
Assets
GMIB reinsurance recoverable	$	262	Discounted cash flow	Mortality(1)	0.01% - 23.42%	Decrease
				Lapse(2)	3.30% - 9.00%	Decrease
				Utilization(3)	0.00% - 20.00%	Increase
				Withdrawal(4)	3.75% - 4.50%	Increase
				Nonperformance risk(5)	0.11% - 1.50%	Decrease
				Long-term Equity Volatility(6)	18.50% - 22.06%	Increase
Liabilities
Embedded derivative liabilities	$	2,626	Discounted cash flow	Mortality(1)	0.04% - 21.45%	Decrease
				Lapse(2)	0.20% - 30.90%	Decrease
				Utilization(3)	5.00% - 100.00%	Increase
				Withdrawal(4)	58.00% - 97.00%	Increase
				Nonperformance risk(5)	0.11% - 1.50%	Decrease
				Long-term Equity Volatility(6)	18.50% - 22.06%	Increase

(1)    Mortality rates vary by attained age, tax qualification status, GMWB benefit election, and duration. The range displayed reflects ages from the minimum issue age for the benefit through age 95, which corresponds to the typical maturity age. A mortality improvement assumption is also applied.

(2)     Base lapse rates vary by contract-level factors, such as product type, surrender charge schedule and optional benefits election. Lapse rates are further adjusted based on the degree to which a guaranteed benefit is in-the-money, with lower lapse applying when benefits are more in-the-money. Lapse rates are also adjusted to reflect lower lapse expectations when GMWB benefits are utilized.

(3)     The utilization rate represents the expected percentage of contracts that will utilize the benefit through annuitization (GMIB) or commencement of withdrawals (GMWB). Utilization may vary by benefit type, attained age, duration, tax qualification status, benefit provision, and degree to which the guaranteed benefit is in-the-money.

(4)     The withdrawal rate represents the utilization rate of the contract’s free partial withdrawal provision (GMIB) or the percentage of annual withdrawal assumed relative to the maximum allowable withdrawal amount (GMWB). Withdrawal rates on contracts with a GMIB vary based on the product type and duration. Withdrawal rates on contracts with a GMWB vary based on attained age, tax qualification status, GMWB type and GMWB benefit provisions.

(5)    Nonperformance risk spread varies by projection year.

(6)    Long-term equity volatility represents the equity volatility beyond the period for which observable equity volatilities are available.

Sensitivity to Changes in Unobservable Inputs

The following is a general description of sensitivities of significant unobservable inputs and their impact on the fair value measurement for the assets and liabilities reflected in the tables above.

At September 30, 2022 and December 31, 2021, securities of $1 million and $2 million are fair valued using techniques incorporating unobservable inputs and are classified in Level 3 of the fair value hierarchy, respectively. For these assets, their unobservable inputs and ranges of possible inputs do not materially affect their fair valuations and have been excluded from the quantitative information in the tables above.

Policy loans that support funds withheld reinsurance agreements that are held at fair value under the fair value option on the Company’s Condensed Consolidated Balance Sheets are excluded from the tables above. These policy loans do not have a stated maturity and the balances, plus accrued investment income, are repaid either by the policyholder or with proceeds from the policy. Due to the collateralized nature of policy loans and unpredictable timing of payments, the Company believes the carrying value of policy loans, which includes accrued investment income, approximates fair value and have been classified as Level 3 within the fair value hierarchy.

Funds withheld payable under reinsurance treaties, for funds withheld payable held at fair value under the fair value option and the Athene embedded derivative, are excluded from the tables above. The fair value of funds withheld payable under reinsurance treaties, excluding the Athene embedded derivative, is determined based upon the fair value of the investments held by the Company related to the Company’s funds withheld payable under reinsurance treaties. The Athene embedded derivative utilizes a total return swap technique which incorporates the fair value of the invested assets supporting the reinsurance agreement as a component of the valuation. As a result, these valuations for the funds withheld payable under reinsurance treaties and the Athene embedded derivative require certain significant inputs which are generally not observable and, accordingly, the valuation is considered Level 3 in the fair value hierarchy.

The GMIB reinsurance recoverable fair value calculation is based on the present value of future cash flows comprised of future expected reinsurance benefit receipts, less future attributed premium payments to reinsurers, over the lives of the contracts. Estimating these cash flows requires actuarially determined assumptions related to expectations concerning policyholder behavior and long-term market volatility. The more significant policyholder behavior actuarial assumptions include benefit utilization, fund allocation, lapse, and mortality.

Embedded derivative liabilities classified in Level 3 represent the fair value of guaranteed minimum withdrawal benefits and guaranteed minimum accumulation benefits liabilities. These fair value calculations are based on the present value of future cash flows comprised of future expected benefit payments, less future attributed rider fees, over the lives of the contracts. Estimating these cash flows requires actuarially determined assumptions related to expectations concerning policyholder behavior and long-term market volatility. The more significant policyholder behavior actuarial assumptions include benefit utilization, fund allocation, lapse, and mortality.

The tables below provide roll forwards for the three and nine months ended September 30, 2022 and 2021 of the financial instruments for which significant unobservable inputs (Level 3) are used in the fair value measurement. Gains and losses in the tables below include changes in fair value due partly to observable and unobservable factors. The Company utilizes derivative instruments to manage the risk associated with certain assets and liabilities. However, the derivative instruments hedging the related risks may not be classified within the same fair value hierarchy level as the associated assets and liabilities. Therefore, the impact of the derivative instruments reported in Level 3 may vary significantly from the total income effect of the hedged instruments.

				Total Realized/Unrealized Gains (Losses) Included in
								Purchases,
		Fair Value						Sales,		Transfers		Fair Value
		as of				Other		Issuances		in and/or		as of
		July 1,		Net		Comprehensive		and		(out of)		September 30,
Three Months Ended September 30, 2022		2022		Income		Income		Settlements		Level 3		2022
Assets
	Debt securities
	Corporate securities	$	47	$	(5)	$	(1)	$	10	$	26	$	77
	Equity securities	124		(6)		—		(11)		—		107
	Mortgage loans	357		(7)		—		158		—		508
	Limited partnerships	1		—		—		—		—		1
	GMIB reinsurance recoverable	232		(25)		—		—		—		207
	Policy loans	3,485		(27)		—		29		—		3,487
Liabilities
	Embedded derivative liabilities	$	(601)	$	1,085	$	—	$	—	$	—	$	484
	Funds withheld payable under reinsurance treaties	(1,141)		857		—		(30)		—		(314)

				Total Realized/Unrealized Gains (Losses) Included in
								Purchases,
		Fair Value						Sales,		Transfers		Fair Value
		as of				Other		Issuances		in and/or		as of
		July 1,		Net		Comprehensive		and		(out of)		September 30,
Three Months Ended September 30, 2021		2021		Income		Income		Settlements		Level 3		2021
Assets
	Debt securities
	Corporate securities	$	31	$	—	$	—	$	3	$	(26)	$	8
	Equity securities	103		6		—		1		—		110
	Limited partnerships	1		—		—		—		—		1
	GMIB reinsurance recoverable	267		11		—		—		—		278
	Policy loans	3,538		(136)		—		86		—		3,488
Liabilities
	Embedded derivative liabilities	$	(2,236)	$	(856)	$	—	$	—	$	—	$	(3,092)
	Funds withheld payable under reinsurance treaties	(4,082)		236		—		(86)		—		(3,932)

				Total Realized/Unrealized Gains (Losses) Included in
								Purchases,
		Fair Value						Sales,		Transfers		Fair Value
		as of				Other		Issuances		in and/or		as of
		January 1,		Net		Comprehensive		and		(out of)		September 30,
Nine Months Ended September 30, 2022		2022		Income		Income		Settlements		Level 3		2022
Assets
	Debt securities
	Corporate securities	$	9	$	—	$	(1)	$	13	$	56	$	77
	Equity securities	112		10		—		(15)		—		107
	Mortgage loans	—		(10)		—		518		—		508
	Limited partnerships	1		—		—		—		—		1
	GMIB reinsurance recoverable	262		(55)		—		—		—		207
	Policy loans	3,467		109		—		(89)		—		3,487
Liabilities
	Embedded derivative liabilities	$	(2,626)	$	3,110	$	—	$	—	$	—	$	484
	Funds withheld payable under reinsurance treaties	(3,759)		3,349		—		96		—		(314)

				Total Realized/Unrealized Gains (Losses) Included in
								Purchases,
		Fair Value						Sales,		Transfers		Fair Value
		as of				Other		Issuances		in and/or		as of
		January 1,		Net		Comprehensive		and		(out of)		September 30,
Nine Months Ended September 30, 2021		2021		Income		Income		Settlements		Level 3		2021
Assets
	Debt securities
	Corporate securities	$	29	$	2	$	—	$	8	$	(31)	$	8
	Equity securities	104		13		—		(7)		—		110
	Limited partnerships	1		—		—		—		—		1
	GMIB reinsurance recoverable	340		(62)		—		—		—		278
	Policy loans	3,455		(11)		—		44		—		3,488
Liabilities
	Embedded derivative liabilities	$	(5,592)	$	2,500	$	—	$	—	$	—	$	(3,092)
	Funds withheld payable under reinsurance treaties	(4,453)		565		2		(46)		—		(3,932)

The components of the amounts included in purchases, sales, issuances and settlements for the three and nine months ended September 30, 2022 and 2021 shown above are as follows (in millions):

Three Months Ended September 30, 2022		Purchases		Sales		Issuances		Settlements		Total
Assets
	Debt securities
	Corporate securities	$	12	$	(2)	$	—	$	—	$	10
	Equity securities	1		(12)		—		—		(11)
	Mortgage loans	159		(1)		—		—		158
	Policy loans	—		—		74		(45)		29
	Total	$	172	$	(15)	$	74	$	(45)	$	186
Liabilities
	Funds withheld payable under reinsurance treaties	$	—	$	—	$	(79)	$	49	$	(30)
Three Months Ended September 30, 2021		Purchases		Sales		Issuances		Settlements		Total
Assets
	Debt securities
	Corporate securities	$	3	$	—	$	—	$	—	$	3
	Equity securities	1		—		—		—		1
	Policy loans	—		—		156		(70)		86
	Total	$	4	$	—	$	156	$	(70)	$	90
Liabilities
	Funds withheld payable under reinsurance treaties	$	—	$	—	$	(187)	$	101	$	(86)

Nine Months Ended September 30, 2022		Purchases		Sales		Issuances		Settlements		Total
Assets
	Debt securities
	Corporate securities	$	15	$	(2)	$	—	$	—	$	13
	Equity securities	1		(16)		—		—		(15)
	Mortgage loans	519		(1)		—		—		518
	Policy loans	—		—		105		(194)		(89)
	Total	$	535	$	(19)	$	105	$	(194)	$	427
Liabilities
	Funds withheld payable under reinsurance treaties	$	—	$	—	$	(111)	$	207	$	96
Nine Months Ended September 30, 2021		Purchases		Sales		Issuances		Settlements		Total
Assets
	Debt securities
	Corporate securities	$	9	$	(1)	$	—	$	—	$	8
	Equity securities	1		(8)		—		—		(7)
	Policy loans	—		—		192		(148)		44
	Total	$	10	$	(9)	$	192	$	(148)	$	45
Liabilities
	Funds withheld payable under reinsurance treaties	$	—	$	—	$	(398)	$	352	$	(46)

For the three and nine months ended September 30, 2022 and 2021, there were no transfers from Level 3 to NAV. For the three and nine months ended September 30, 2022, transfers from Level 3 to Level 2 of the fair value hierarchy were $4 million and $9 million, respectively, and transfers from Level 2 to Level 3 were $30 million and $65 million, respectively.

For the three and nine months ended September 30, 2021, transfers from Level 3 to Level 2 of the fair value hierarchy were $29 million and $52 million, respectively, and transfers from Level 2 to Level 3 were $3 million and $21 million, respectively.

The portion of gains (losses) included in net income (loss) or other comprehensive income (loss) ("OCI") attributable to the change in unrealized gains and losses on Level 3 financial instruments still held was as follows (in millions):

	Three Months Ended September 30,
	2022				2021
	Included in Net Income		Included in OCI		Included in Net Income		Included in OCI
Assets
Debt securities
Corporate securities	$	(5)	$	(1)	$	—	$	—
Equity securities	(6)		—		6		—
Mortgage loans	(7)		—		—		—
GMIB reinsurance recoverable	(25)		—		11		—
Policy loans	(27)		—		(136)		—
Liabilities
Embedded derivative liabilities	$	1,085	$	—	$	(856)	$	—
Funds withheld payable under reinsurance treaties	857		—		110		—

	Nine Months Ended September 30,
	2022				2021
	Included in Net Income		Included in OCI		Included in Net Income		Included in OCI
Assets
Debt securities
Corporate securities	$	—	$	(1)	$	2	$	—
Equity securities	10		—		13		—
Mortgage loans	(10)		—		—		—
GMIB reinsurance recoverable	(55)		—		(62)		—
Policy loans	109		—		(11)		—
Liabilities
Embedded derivative liabilities	$	3,110	$	—	$	2,500	$	—
Funds withheld payable under reinsurance treaties	3,349		—		565		—

Fair Value of Financial Instruments Carried at Other Than Fair Value

Mortgage Loans

Fair values are generally determined by discounting expected future cash flows at current market interest rates, inclusive of a credit spread, for similar quality loans. For loans whose value is dependent on the underlying property, fair value is the estimated value of the collateral. Certain characteristics considered significant in determining the spread or collateral value may be based on internally developed estimates. As a result, these investments have been classified as Level 3 within the fair value hierarchy.

Mortgage loans held under the funds withheld reinsurance agreement are valued using third-party pricing services, which may use economic inputs, geographical information, and property specific assumptions in deriving the fair value price. The Company reviews the valuations from these pricing providers to ensure they are reasonable. Due to lack of observable inputs, these investments have been classified as Level 3 within the fair value hierarchy.

Policy Loans

Policy loans are funds provided to policyholders in return for a claim on the policies values and function like demand deposits which are redeemable upon repayment, death or surrender, and there is only one market price at which the transaction could be settled – the then current carrying value. The funds provided are limited to the cash surrender value of the underlying policy. The nature of policy loans is to have a negligible default risk as the loans are fully collateralized by the value of the policy. Policy loans do not have a stated maturity and the balances and accrued interest are repaid either by the policyholder or with proceeds from the policy. Due to the collateralized nature of policy loans and unpredictable timing of payments, the Company believes the carrying value of policy loans approximates fair value. The non-reinsurance related component of policy loans has been classified as Level 3 within the fair value hierarchy.

FHLBI Capital Stock

FHLBI capital stock, which is included in other invested assets, can only be sold to FHLBI at a constant price of $100 per share. Due to the lack of valuation uncertainty, the investment has been classified as Level 1.

Other Contract Holder Funds

Fair values for immediate annuities without mortality features are derived by discounting the future estimated cash flows using current market interest rates for similar maturities. Fair values for deferred annuities, including the fixed option on variable annuities, fixed annuities, fixed index annuities and RILAs, are determined using projected future cash flows discounted at current market interest rates.

Fair values for guaranteed investment contracts are based on the present value of future cash flows discounted at current market interest rates.

Fair values for trust instruments supported by funding agreements are based on the present value of future cash flows discounted at current market interest rates.

Fair values of the FHLB funding agreements are based on the present value of future cash flows discounted at current market interest rates.

Funds Withheld Payable Under Reinsurance Treaties

The fair value of the funds withheld payable is equal to the fair value of the assets held as collateral, which primarily consists of bonds, mortgages, limited partnerships, and cash and cash equivalents. The fair value of the assets generally uses industry standard valuation techniques as described above and the funds withheld payable components are valued consistent with the assets in the fair value hierarchy.

Debt

Fair values for the Company’s surplus notes and long-term debt are generally determined by prices obtained from independent broker dealers or discounted cash flow models. Such prices are derived from market observable inputs and are classified as Level 2.

Securities Lending Payable

The Company’s securities lending payable is set equal to the cash collateral received. Due to the short-term nature of the loans, carrying value is a reasonable estimate of fair value and is classified as Level 2.

FHLB Advances

Carrying value of the Company’s FHLB advances, which are included in other liabilities, is considered a reasonable estimate of fair value due to their short-term maturities and are classified as Level 2.

Repurchase Agreements

Carrying value of the Company’s repurchase agreements is considered a reasonable estimate of fair value due to their short-term maturities and are classified as Level 2.

Separate Account Liabilities

The values of separate account liabilities are set equal to the values of separate account assets, which are comprised of investments in mutual funds that transact regularly, but do not trade in active markets as they are not publicly available, and, are categorized as Level 2.

The table below presents the carrying amount and fair value by fair value hierarchy level of certain financial instruments that are not reported at fair value (in millions).

	September 30, 2022
			Fair Value
	Carrying Value		Total		Level 1		Level 2		Level 3
Assets
Mortgage loans	$	11,223	$	10,585	$	—	$	—	$	10,585
Policy loans	959		959		—		—		959
FHLBI capital stock	146		146		146		—		—
Liabilities
Annuity reserves (1)	$	36,897	$	32,099	$	—	$	—	$	32,099
Reserves for guaranteed investment contracts (2)	1,162		1,124		—		—		1,124
Trust instruments supported by funding agreements (2)	4,944		4,765		—		—		4,765
FHLB funding agreements (2)	2,252		2,385		—		—		2,385
Funds withheld payable under reinsurance treaties	23,586		23,586		—		—		23,586
Debt	2,634		2,339		—		2,339		—
Securities lending payable	27		27		—		27		—
Repurchase agreements	—		—		—		—		—
Separate account liabilities (4)	185,042		185,042		—		185,042		—
	December 31, 2021
			Fair Value
	Carrying Value		Total		Level 1		Level 2		Level 3
Assets
Mortgage loans	$	11,482	$	11,910	$	—	$	—	$	11,910
Policy loans	1,008		1,008		—		—		1,008
FHLBI capital stock	125		125		125		—		—
Liabilities
Annuity reserves (1)	$	36,318	$	46,045	$	—	$	—	$	46,045
Reserves for guaranteed investment contracts (2)	894		923		—		—		923
Trust instruments supported by funding agreements (2)	5,986		6,175		—		—		6,175
FHLB funding agreements (2)	1,950		1,938		—		—		1,938
Funds withheld payable under reinsurance treaties (3)	24,533		24,533		537		19,127		4,869
Debt	2,649		2,745		—		2,745		—
Securities lending payable	17		17		—		17		—
Repurchase agreements	1,572		1,572		—		1,572		—
Separate account liabilities (4)	248,949		248,949		—		248,949		—
(1) Annuity reserves represent only the components of other contract holder funds that are considered to be financial instruments.
(2) Included as a component of other contract holder funds on the Condensed Consolidated Balance Sheets.
(3) Excludes $715 million of limited partnership investments measured at NAV at December 31, 2021, respectively.
(4) The values of separate account liabilities are set equal to the values of separate account assets.

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Deferred Acquisition Costs

9 Months Ended

Sep. 30, 2022

Insurance [Abstract]

Deferred Acquisition Costs

Deferred Acquisition Costs

The balances of, and changes, in deferred acquisition costs were as follows (in millions):

	Nine Months Ended September 30,
	2022		2021
Balance, beginning of period	$	14,249	$	13,897
Deferrals of acquisition costs	497		592
Amortization	(2,276)		(551)
Unrealized investment (gains) losses	327		79
Balance, end of period	$	12,797	$	14,017

See Note 7 of Notes to Consolidated Financial Statements in Part II, Item 8, Financial Statements and Supplementary Data of the Company’s 2021 Annual Report, for more information regarding deferred acquisition costs.

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Reinsurance

9 Months Ended

Sep. 30, 2022

Insurance [Abstract]

Reinsurance

Reinsurance

The Company assumes and cedes reinsurance from and to other insurance companies to limit losses from large exposures. However, if the reinsurer is unable to meet its obligations, the originating issuer of the coverage retains the liability. The Company reinsures certain of its risks to other reinsurers under a coinsurance, modified coinsurance, or yearly renewable term basis. The Company regularly monitors the financial strength ratings of its reinsurers.

The Company has also acquired certain lines of business that are wholly ceded to non-affiliates. These include both direct and assumed accident and health business, direct and assumed life insurance business, and certain institutional annuities.

Athene Reinsurance

The Company entered into a funds withheld coinsurance agreement with Athene effective June 1, 2020 to reinsure on 100% quota share basis, a block of Jackson’s in-force fixed and fixed-index annuity product liabilities in exchange for a $1.2 billion ceding commission. The coinsurance with funds withheld agreement required Jackson to establish a segregated account in which the investments supporting the ceded obligations are maintained. While the economic benefits of the investments flow to Athene, Jackson retains physical possession and legal ownership of the investments supporting the reserve. Further, the investments in the segregated account are not available to settle any policyholder obligations other than those specifically covered by the coinsurance agreement and are not available to settle obligations to general creditors of Jackson. The profit and loss with respect to obligations ceded to Athene are included in periodic net settlements pursuant to the coinsurance agreement. To further support its obligations under the coinsurance agreement, Athene procured $1.2 billion in letters of credit for Jackson’s benefit and established a trust account for Jackson’s benefit, which had a book value of approximately $254 million at September 30, 2022.

Swiss Re Reinsurance

The Company has three retrocession reinsurance agreements (“retro treaties”) with Swiss Reinsurance Company Ltd. (“SRZ”). Pursuant to these retro treaties, the Company ceded certain blocks of business to SRZ on a 100% coinsurance basis, subject to pre-existing reinsurance with other parties.

The following assets and liabilities were held in support of reserves associated with the Company’s funds withheld reinsurance agreements and were reported in the respective financial statement line items in the Condensed Consolidated Balance Sheets (in millions):

	September 30,		December 31,
	2022		2021
Assets
Debt securities, available-for-sale	$	13,919	$	19,094
Debt securities, at fair value under the fair value option	158		164
Equity securities	84		116
Mortgage loans	4,346		4,739
Mortgage loans, at fair value under the fair value option	508		—
Policy loans	3,500		3,483
Freestanding derivative instruments, net	143		37
Other invested assets	869		715
Cash and cash equivalents	509		438
Accrued investment income	169		162
Other assets and liabilities, net	(146)		(56)
Total assets (1)	$	24,059	$	28,892
Liabilities
Funds held under reinsurance treaties (2)	$	23,900	$	29,007
Total liabilities	$	23,900	$	29,007

(1)     Certain assets are reported at amortized cost while the fair value of those assets is reported in the embedded derivative in the funds withheld liability.

(2) Includes funds withheld embedded derivative asset (liability) of $3,332 million and $(120) million at September 30, 2022 and December 31, 2021, respectively.

The sources of income related to funds withheld under reinsurance treaties reported in net investment income in the Condensed Consolidated Income Statements were as follows (in millions):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Debt securities (1)	$	178	$	184	$	508	$	581
Equity securities	(3)		1		(28)		4
Mortgage loans (2)	59		49		160		127
Policy loans	77		76		236		238
Limited partnerships	23		16		125		17
Other investment income	—		—		1		—
Total investment income on funds withheld assets	334		326		1,002		967
Other investment expenses on funds withheld assets (3)	(21)		(26)		(65)		(83)
Total net investment income on funds withheld reinsurance treaties	$	313	$	300	$	937	$	884

    

(1)    Includes $(3) million and $(11) million for the three and nine months ended September 30, 2022, respectively, and $(1) million and $(2) million for the three and nine months ended September 30, 2021, respectively, related to the change in fair value for securities carried under the fair value option.

(2)    Includes $(7) million and $(10) million for the three and nine months ended September 30, 2022, respectively, and nil both for the three and nine months ended September 30, 2021, respectively, related to the change in fair value for mortgage loans carried under the fair value option.

(3)    Includes management fees.

The gains and losses on funds withheld reinsurance treaties as a component of net gains (losses) on derivatives and investments in the Condensed Consolidated Income Statements were as follows (in millions):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Available-for-sale securities
Realized gains on sale	$	1	$	81	$	41	$	339
Realized losses on sale	(8)		(1)		(39)		(14)
Credit loss expense	7		(1)		(33)		(2)
Credit loss expense on mortgage loans	6		25		17		21
Other	(43)		(20)		(102)		(32)
Net gains (losses) on non-derivative investments	(37)		84		(116)		312
Net gains (losses) on derivative instruments	76		34		160		53
Net gains (losses) on funds withheld payable under reinsurance treaties (1)	516		(233)		2,616		(350)
Total net gains (losses) on derivatives and investments	$	555	$	(115)	$	2,660	$	15
(1) Includes the Athene embedded derivative gain (loss) of $824 million and $3,452 million for the three and nine months ended September 30, 2022, respectively, and $101 million and $555 million for the three and nine months ended September 30, 2021, respectively.

While the economic benefits of the funds withheld assets flow to the respective reinsurers, Jackson retains physical possession and legal ownership of the investments supporting the reserves. Net investment income and net gains (losses) on derivatives and investments related to the funds withheld assets are included in periodic settlements under the reinsurance agreements which results in the flow of returns on the assets to the reinsurers. Net gains (losses) on the funds withheld assets are increased or decreased by changes in the embedded derivative liability related to the Athene Reinsurance Agreement and include (i) changes in the related funds withheld payable and (ii) amortization of the basis difference between book value and fair value of the investments as of the effective date of the reinsurance agreements.

Components of the Company’s reinsurance recoverable were as follows (in millions):

	September 30,		December 31,
	2022		2021
Reserves:
Life	$	5,753	$	5,829
Accident and health	534		547
Guaranteed minimum income benefits	207		262
Other annuity benefits (1)	23,506		25,625
Claims liability and other	796		863
Total	$	30,796	$	33,126

(1)     Other annuity benefits primarily attributable to fixed and fixed index annuities reinsured with Athene.

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Reserves for Future Policy Benefits and Claims Payable and Other Contract Holder Funds

9 Months Ended

Sep. 30, 2022

Insurance [Abstract]

Reserves for Future Policy Benefits and Claims Payable and Other Contract Holder Funds

Reserves for Future Policy Benefits and Claims Payable and Other Contract Holder Funds

For traditional life insurance contracts, which include term and whole life, reserves for future policy benefits are determined using the net level premium method and assumptions as of the issue date or acquisition date as to mortality, interest, lapse and expenses, plus provisions for adverse deviations. These assumptions are not unlocked unless the reserve is determined to be deficient. Interest rate assumptions range from 2.5% to 6.0%. Lapse, mortality, and expense assumptions for recoverability are based primarily on Company experience. The Company’s liability for future policy benefits also includes net liabilities for guaranteed benefits related to certain nontraditional long-duration life and annuity contracts, which are further discussed in Note 10.

Group payout annuities consist of a closed block of defined benefit annuity plans. The liability for future benefits for these limited payment contracts is calculated using assumptions as of the acquisition date as to mortality and expense plus provisions for adverse deviation.

In conjunction with a prior acquisition, the Company recorded a fair value adjustment at acquisition related to certain annuity and interest sensitive liability blocks of business to reflect the cost of the interest guarantees within the in-force liabilities, based on the difference between the guaranteed interest rate and an assumed new money guaranteed interest rate at acquisition. This adjustment was recorded in reserves for future policy benefits and claims payable. This reserve is reassessed at the end of each period, taking into account changes in the in-force block. Any resulting change in the reserve is recorded as a change in policy reserve through the Condensed Consolidated Income Statements.

The following table sets forth the Company’s reserves for future policy benefits and claims payable balances (in millions):

	September 30,		December 31,
	2022		2021
Traditional life	$	4,030	$	4,262
Guaranteed benefits (1)	3,529		5,477
Claims payable	977		1,050
Accident and health	1,171		1,204
Group payout annuities	4,660		4,895
Life contingent payouts	1,160		1,152
Other	603		627
Total	$	16,130	$	18,667

(1)     Primarily includes the embedded derivative liabilities related to the GMWB reserve.

The following table sets forth the Company’s liabilities for other contract holder funds balances (in millions):

	September 30,		December 31,
	2022		2021
Interest-sensitive life	$	11,336	$	11,553
Variable annuity fixed option	10,751		9,751
RILA (1)	1,235		110
Fixed annuity	14,035		14,960
Fixed index annuity (2)	12,279		13,333
GICs, funding agreements and FHLB advances	8,358		8,830
Other	180		189
Total	$	58,174	$	58,726

(1) Includes the embedded derivative liabilities related to RILA of $10 million and $6 million at September 30, 2022 and December 31, 2021, respectively.

(2) Includes the embedded derivative liabilities related to fixed index annuity of $967 million and $1,439 million at September 30, 2022 and December 31, 2021, respectively.

For interest-sensitive life contracts, liabilities approximate the policyholder’s account value, plus the remaining balance of the fair value adjustment related to previously acquired business, which is further discussed below. The liability for fixed index annuities and registered index linked annuities is based on three components: 1) the imputed value of the underlying guaranteed host contract, 2) the fair value of the embedded option component of the contract, and 3) the liability for guaranteed benefits related to the optional lifetime income rider. For fixed annuities, variable annuity fixed option, and other investment contracts, as included in the above table, the liability is the account value, plus the unamortized balance of the fair value adjustment related to previously acquired business. For payout annuities, as included in the above table, reserves are determined under the methodology for limited-payment contracts (for those with significant life contingencies) or using a constant yield method and assumptions as of the issue date for mortality, interest rates, lapse and expenses plus provisions for adverse deviations. At September 30, 2022, the Company had interest sensitive life business with minimum guaranteed interest rates ranging from 2.5% to 6.0% with a 4.68% average guaranteed rate and fixed interest rate annuities with minimum guaranteed rates ranging from 1.0% to 5.5% and a 1.94% average guaranteed rate.

At both September 30, 2022 and December 31, 2021, excluding the reinsured business, approximately 94% of the Company’s annuity account values correspond to crediting rates that are at the minimum guaranteed interest rates. The following tables show the distribution of those annuity account values within the presented ranges of minimum guaranteed interest rates (in millions):

	September 30, 2022
Minimum Guaranteed Interest Rate	Account Value
	Fixed		Fixed Index		RILA		Variable		Total
1.0%	$	256	$	345	$	12	$	6,879	$	7,492
>1.0% - 2.0%	51		—		—		208		259
>2.0% - 3.0%	1,080		166		—		3,347		4,593
>3.0% - 4.0%	573		—		—		—		573
>4.0% - 5.0%	273		—		—		—		273
>5.0% - 5.5%	72		—		—		—		72
Subtotal	2,305		511		12		10,434		13,262
Ceded reinsurance	11,141		11,768		—		—		22,909
Total	$	13,446	$	12,279	$	12	$	10,434	$	36,171
	December 31, 2021
Minimum Guaranteed Interest Rate	Account Value
	Fixed		Fixed Index		RILA		Variable		Total
1.0%	$	156	$	279	$	1	$	5,988	$	6,424
>1.0% - 2.0%	57		1		—		214		272
>2.0% - 3.0%	1,113		183		—		3,254		4,550
>3.0% - 4.0%	594		—		—		—		594
>4.0% - 5.0%	276		—		—		—		276
>5.0% - 5.5%	72		—		—		—		72
Subtotal	2,268		463		1		9,456		12,188
Ceded reinsurance	12,086		12,870		—		—		24,956
Total	$	14,354	$	13,333	$	1	$	9,456	$	37,144

At both September 30, 2022 and December 31, 2021, approximately 80% of the Company’s interest sensitive life business account values correspond to crediting rates that are at the minimum guaranteed interest rates. The following table shows the distribution of the interest sensitive life business account values within the presented ranges of minimum guaranteed interest rates, excluding the business that is subject to the previously mentioned retro treaties (in millions):

	September 30,		December 31,
Minimum Guaranteed Interest Rate	2022		2021
	Account Value - Interest Sensitive Life
>2.0% - 3.0%	$	244	$	252
>3.0% - 4.0%	2,657		2,736
>4.0% - 5.0%	2,306		2,381
>5.0% - 6.0%	1,907		1,962
Subtotal	7,114		7,331
Retro treaties	4,222		4,222
Total	$	11,336	$	11,553

The Company has established a $27 billion aggregate Global Medium-Term Note ("MTN") program. Jackson National Life Global Funding was formed as a statutory business trust, solely for the purpose of issuing Medium Term Note instruments to institutional investors, the proceeds of which are deposited with the Company and secured by the issuance of funding agreements. The carrying values at September 30, 2022 and December 31, 2021 totaled $4.9 billion and $6.0 billion, respectively.

Those Medium-Term Note instruments issued in a foreign currency have been hedged for changes in exchange rates using cross-currency swaps. The unrealized foreign currency gains and losses on those Medium-Term Note instruments are included in the carrying value of the trust instruments supported by funding agreements.

Trust instrument liabilities are adjusted to reflect the effects of foreign currency translation gains and losses using exchange rates as of the reporting date. Foreign currency translation gains and losses are included in net gains (losses) on derivatives and investments.

Jackson is a member of the FHLBI primarily for the purpose of participating in the bank’s mortgage-collateralized loan advance program with long-term funding facilities. Advances are in the form of long-term notes or funding agreements issued to FHLBI. At September 30, 2022 and December 31, 2021, the Company held $146 million and $125 million of FHLBI capital stock, respectively, supporting $2.3 billion and $2.0 billion in funding agreements and long-term borrowings at September 30, 2022 and December 31, 2021, respectively.

The Company’s institutional products business is comprised of the traditional guaranteed investment contracts, medium-term funding agreement-backed notes and funding agreements (including agreements issued in conjunction with the Company’s participation in the U.S. Federal Home Loan Bank program) described above.

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Certain Nontraditional Long-Duration Contracts and Variable Annuity Guarantees

9 Months Ended

Sep. 30, 2022

Insurance [Abstract]

Certain Nontraditional Long-Duration Contracts and Variable Annuity Guarantees

Certain Non-traditional Long-Duration Contracts and Variable Annuity Guarantees

The Company issues variable contracts through its separate accounts for which investment income and investment gains and losses accrue directly to, and investment risk is borne by, the contract holder (“traditional variable annuities”). The Company also issues variable annuity and life contracts through separate accounts where the Company contractually guarantees to the contract holder (“variable contracts with guarantees”) either a) return of no less than total deposits made to the account adjusted for any partial withdrawals, b) total deposits made to the account adjusted for any partial withdrawals plus a minimum return, or c) the highest account value on a specified anniversary date adjusted for any withdrawals following the contract anniversary. These guarantees include benefits that are payable in the event of death (guaranteed minimum death benefits, or "GMDB"), at annuitization (GMIB), upon the depletion of funds (GMWB) or at the end of a specified period (GMAB).

The assets supporting the variable portion of both traditional variable annuities and variable contracts with guarantees are carried at fair value and reported as summary total separate account assets with an equivalent summary total reported for separate account liabilities. Liabilities for guaranteed benefits are general account obligations and are reported in reserves for future policy benefits and claims payable. Amounts assessed against the contract holders for mortality, administrative, and other services are reported in revenue as fee income. Changes in liabilities for minimum guarantees are reported within death, other policy benefits and change in policy reserves within the Condensed Consolidated Income Statements with the exception of changes in embedded derivatives, which are included in net gains (losses) on derivatives and investments. Separate account net investment income, net investment realized and unrealized gains and losses, and the related liability changes are offset within the same line item in the Condensed Consolidated Income Statements.

At September 30, 2022 and December 31, 2021, the Company provided variable annuity contracts with guarantees, for which the net amount at risk is defined as the amount of guaranteed benefit in excess of current account value, as follows (dollars in millions):

		Minimum Return	Account  Value		Net Amount at Risk		Weighted Average Attained Age	Average Period until Expected Annuitization
September 30, 2022
Return of net deposits plus a minimum return
	GMDB	0-6%	$	143,677	$	11,321	69.2 years
	GMWB - Premium only	0%	2,047		86
	GMWB	0-5%*	162		17
Highest specified anniversary account value    minus withdrawals post-anniversary
	GMDB		10,646		3,097		70.4 years
	GMWB - Highest anniversary only		2,819		723
	GMWB		831		169
Combination net deposits plus minimum return,    highest specified anniversary account value    minus withdrawals post-anniversary
	GMDB	0-6%	7,276		2,748		72.2 years
	GMIB	0-6%	1,156		827			0.5 years
	GMWB	0-8%*	134,190		48,276
							Weighted Average Attained Age	Average Period until Expected Annuitization
		Minimum Return	Account  Value		Net Amount at Risk
December 31, 2021
Return of net deposits plus a minimum return
	GMDB	0-6%	$	194,060	$	2,124	68.7 years
	GMWB - Premium only	0%	2,937		7
	GMWB	0-5%*	245		8
Highest specified anniversary account value    minus withdrawals post-anniversary
	GMDB		14,806		93		69.8 years
	GMWB - Highest anniversary only		3,919		33
	GMWB		643		44
Combination net deposits plus minimum return,    highest specified anniversary account value    minus withdrawals post-anniversary
	GMDB	0-6%	9,896		522		71.9 years
	GMIB	0-6%	1,662		463			0.5 years
	GMWB	0-8%*	181,457		4,295

* Ranges shown based on simple interest. The upper limits of 5% or 8% simple interest are approximately equal to 4.1% and 6.0%, respectively, on a compound interest basis over a typical 10-year bonus period. The combination GMWB category also includes benefits with a defined increase in the withdrawal percentage under pre-defined non-market conditions.

Amounts shown as GMWB above include a ‘not-for-life’ component up to the point at which the guaranteed withdrawal benefit is exhausted, after which benefits paid are considered ‘for-life’ benefits. The liability related to this ‘not-for-life’ portion is valued as an embedded derivative, while the ‘for-life’ benefits are valued as an insurance liability (see below). For this table, the net amount at risk of the ‘not-for-life’ component is the undiscounted excess of the guaranteed withdrawal benefit over the account value, and that of the ‘for-life’ component is the estimated value of additional life contingent benefits paid after the guaranteed withdrawal benefit is exhausted.

Account balances of contracts with guarantees were invested in variable separate accounts as follows (in millions):

	September 30,		December 31,
	2022		2021
Fund type:
Equity	$	110,764	$	154,368
Bond	15,818		20,207
Balanced	33,221		43,185
Money market	2,358		1,564
Total	$	162,161	$	219,324

GMDB liabilities reflected in the general account were as follows (in millions):

	Nine Months Ended September 30,
	2022		2021
Balance as of beginning of year	$	1,370	$	1,418
Incurred guaranteed benefits	1,147		173
Paid guaranteed benefits	(146)		(78)
Balance as of end of period	$	2,371	$	1,513

The GMDB liability is determined by estimating the expected value of death benefits in excess of the projected account balance and recognizing the excess ratably over the accumulation period based on total expected assessments. The Company regularly evaluates estimates used and adjusts the liability balance through the Condensed Consolidated Income Statements, within death, other policy benefits and change in policy reserves, if actual experience or other evidence suggests that earlier assumptions should be revised.

The following assumptions and methodology were used to determine the GMDB liability at both September 30, 2022 and December 31, 2021 (except where otherwise noted):

•Use of a series of stochastic investment performance scenarios, based on historical average market volatility.

•Mean investment performance assumption of 7.15%, after investment management fees, but before external investment advisory fees and mortality and expense charges.

•Mortality equal to 38% to 100% of the 2012 Individual Annuity Mortality basic table improved using Scale G2 through 2020.

•Lapse rates varying by contract type, duration and degree the benefit is in-the-money and ranging from 0.3% to 27.9% (before application of dynamic adjustments).

•Discount rates: 7.15% on 2020 and later issues, 7.4% on 2013 through 2019 issues, 8.4% on 2012 and prior issues.

Most GMWB reserves are considered derivatives under current accounting guidance and are recognized at fair value, as previously defined, with the change in fair value reported in net income (as net gains (losses) on derivatives and investments). The fair value of these liabilities is determined using stochastic modeling and inputs as further described in Note 6. The fair valued GMWB had a reserve asset of $484 million and reserve liability of $2,626 million at September 30, 2022 and December 31, 2021, respectively, and was reported in reserves for future policy benefits and claims payable.

The Company has also issued certain GMWB products that guarantee payments over a lifetime. Reserves for the portion of these benefits after the point where the guaranteed withdrawal balance is exhausted are calculated using assumptions and methodology similar to the GMDB liability. At September 30, 2022 and December 31, 2021, these GMWB reserves totaled $359 million and $196 million, respectively, and were reported in reserves for future policy benefits and claims payable.

GMAB benefits were offered on some variable annuity products. However, the Company no longer offers these benefits and all have expired as of June 30, 2021.

The direct GMIB liability is determined at each period end by estimating the expected value of the annuitization benefits in excess of the projected account balance at the date of annuitization and recognizing the excess ratably over the accumulation period based on total expected assessments. The assumptions used for calculating the direct GMIB liability are consistent with those used for calculating the GMDB liability. At September 30, 2022 and December 31, 2021, GMIB reserves before reinsurance totaled $153 million and $78 million, respectively.

Other Liabilities – Insurance and Annuitization Benefits

The Company has established additional reserves for life insurance business for universal life plans with secondary guarantees, interest-sensitive life plans that exhibit “profits followed by loss” patterns and account balance adjustments to tabular guaranteed cash values on one interest-sensitive life plan.

Liabilities for these benefits, as established according to the methodologies described below, are as follows:

	September 30, 2022					December 31, 2021
Benefit Type	Liability (in millions)		Net Amount at Risk (in millions)		Weighted Average Attained Age	Liability (in millions)		Net Amount at Risk (in millions)		Weighted Average Attained Age
Insurance benefits *	$	954	$	17,676	64.6 years	$	943	$	18,506	64.0 years
Account balance adjustments	145		N/A		N/A	141		N/A		N/A

*    Amounts for the universal life benefits are for the total of the plans containing any policies having projected non-zero excess benefits, and thus may include some policies with zero projected excess benefits.

The following assumptions and methodology were used to determine the universal life insurance benefit liability for the periods referenced in the table above:

•Use of a series of deterministic premium persistency scenarios.

•Other experience assumptions similar to those used in amortization of deferred acquisition costs.

•Discount rates equal to credited interest rates, approximately 3.0% to 5.3% at September 30, 2022 and 3.0% to 5.5% at December 31, 2021.

The Company also has a small, closed block of two-tier annuities, where different crediting rates are used for annuitization and surrender benefit calculations. A liability is established to cover future annuitization benefits in excess of surrender values and was immaterial to the Condensed Consolidated Financial Statements at both September 30, 2022 and December 31, 2021, respectively. The Company also offers an optional lifetime income rider with certain of its fixed index annuities. The liability established for this rider before reinsurance was $53 million and $37 million at September 30, 2022 and December 31, 2021, respectively.

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Long-Term Debt

9 Months Ended

Sep. 30, 2022

Debt Disclosure [Abstract]

Long-Term Debt

Long-Term Debt

Liabilities for the Company’s debt are primarily carried at an amount equal to the principal balance net of any unamortized original issuance discount or premium. Original issuance discount or premium and any debt issue costs, if applicable, are recognized as a component of interest expense over the period the debt is expected to be outstanding.

The aggregate carrying value of long-term debt were as follows (in millions):

	September 30,		December 31,
	2022		2021
Long-Term Debt
Senior Notes due 2023	$	597	$	596
Senior Notes due 2027	397		—
Senior Notes due 2031	493		495
Senior Notes due 2032	347		—
Senior Notes due 2051	488		490
Term loan due 2023	—		751
Surplus notes	250		250
FHLBI bank loans	62		67
Total long-term debt	$	2,634	$	2,649

The following table presents the contractual maturities of the Company's long-term debt as of September 30, 2022 (in millions):

	Calendar Year
	2023		2024		2025		2026		2027 and thereafter		Total
Long-term debt	$	597	$	—	$	—	$	—	$	2,037	$	2,634

Senior Notes

On June 8, 2022, the Company issued $750 million aggregate principal amount of its senior unsecured notes, consisting of $400 million aggregate principal amount of 5.170% Senior Notes due June 8, 2027 and $350 million aggregate principal amount of 5.670% Senior Notes due June 8, 2032. The net proceeds of these notes were used, together with cash on hand, to repay the Company’s $750 million aggregate principal senior unsecured amount term loan due February 2023 (the “2023 DDTL Facility”).

On November 23, 2021, the Company issued $1.6 billion aggregate principal amount of its senior unsecured notes consisting of $600 million aggregate principal amount of 1.125% Senior Notes due November 22, 2023, $500 million aggregate principal amount of 3.125% Senior Notes due November 23, 2031 and $500 million aggregate principal amount of 4.000% Senior Notes due November 23, 2051. The proceeds of these notes were used, together with cash on hand, to repay the Company’s $1.6 billion aggregate principal amount senior unsecured term loan due May 2022 (the “2022 DDTL Facility”), as described below.

Term LoansOn February 22, 2021, the Company entered into loan facilities including a $1.0 billion revolving credit facility (the “Revolving Facility”), a $1.7 billion 2022 DDTL Facility and a $1.0 billion 2023 DDTL Facility (the “Credit Facilities”) with a syndicate of banks. The Revolving Facility provides a liquidity backstop. On September 10, 2021, the Company borrowed an aggregate principal amount of $2.4 billion under the term loan facilities as follows: $1.6 billion under the 2022 DDTL Facility and $750 million under the 2023 DDTL Facility. The proceeds of those borrowings were used for general corporate purposes, including liquidity at the holding company and capitalization of the insurance subsidiaries. Under the terms of the credit agreement for the DDTL Facilities, subject to certain exceptions, 100% of the net cash proceeds from any debt issuance, preferred equity issuance or hybrid instrument issuance by the Company or its subsidiaries was required to be applied (i) first to prepay the 2022 DDTL Facility and (ii) thereafter, to prepay the 2023 DDTL Facility. As noted above, both term loans have been retired through the application of the proceeds from senior unsecured notes and cash on hand.

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Federal Home Loan Bank Advances	9 Months Ended
	Sep. 30, 2022
Other Liabilities Disclosure [Abstract]
Federal Home Loan Bank Advances	Federal Home Loan Bank AdvancesThe Company, through its subsidiary, Jackson, entered into an advance program with the FHLBI in which interest rates were either fixed or variable based on the FHLBI cost of funds or market rates. Advances of nil were outstanding at both September 30, 2022 and December 31, 2021 and were recorded in other liabilities.

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Income Taxes

9 Months Ended

Sep. 30, 2022

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

On August 16, 2022, President Biden signed the Inflation Reduction Act of 2022 (“IRA”) into law. The IRA includes a new Federal alternative minimum tax (“AMT”), effective in 2023, that is based on 15% of an applicable corporation’s adjusted financial statement income (“AFSI”). A corporation will be subject to the AMT if its average pre-tax AFSI over three prior years (starting with 2020-2022) is greater than $1 billion (an “applicable corporation”). Upon becoming an applicable corporation, an entity will remain so for all future years, except under limited circumstances. The corporation’s AMT liability is payable to the extent the AMT liability exceeds regular corporate income tax. However, any AMT paid would be indefinitely available as a credit carryover that could reduce future regular corporate income tax in excess of AMT. We believe that we will be an applicable corporation starting in 2023. That belief is based on interpretations and assumptions we have made regarding the AMT provisions of the IRA, which may change once regulatory guidance is issued. As of September 30, 2022, we have not recorded any provision for the AMT. The U.S. Department of the Treasury is expected to issue regulatory guidance throughout 2023.

The IRA also creates a 1% excise tax on stock buybacks of publicly-traded U.S. corporations. Starting in 2023, such excise tax generally applies if a company repurchases in excess of $1 million worth of its stock in any given calendar year. The impact of this provision will be dependent on the extent of share repurchases made in future periods. Any excise tax incurred on corporate stock repurchases will generally be recognized as part of the cost basis of the treasury stock acquired and not reported as income tax expense.

The Company uses the estimated annual effective tax rate (“ETR”) method in computing the interim tax provision. Certain items, including those deemed unusual, infrequent, or that cannot be reliably estimated, are treated as discrete items and excluded from the estimated annual ETR. In these cases, the actual tax expense or benefit is reported in the same period as the related item. Certain tax effects are also not reflected in the estimated annual ETR, primarily certain changes in the realizability of deferred tax assets and uncertain tax positions and are recorded in the period in which the change occurs. The estimated annual ETR is revised, as necessary, at the end of successive interim reporting periods.

The Company’s effective income tax rate was 27.4% and 20.0% for the three and nine months ended September 30, 2022, compared with (8.6)% and 16.5% for the same periods in 2021. The ETR differs from the statutory rate of 21% primarily due to the dividends received deduction and utilization of foreign tax credits. The change in the ETR for the three and nine months ended September 30, 2022 was due to the relationship of taxable income to consolidated pre-tax income and the impact of tax adjustments related to prior year returns recorded in the current quarter compared to the impact from tax adjustments related to prior year returns recorded in the third quarter of 2021. The ETR differs for the nine months ended September 30, 2022 from the full year-ended December 31, 2021 ETR of 15.9% due to the relationship of taxable income to consolidated pre-tax income, including the tax expense from tax adjustments related to prior year returns recorded in the current quarter and the net interest related to income taxes recorded in 2021.

The Company is required to evaluate the recoverability of its deferred tax assets and establish a valuation allowance, if necessary, to reduce its deferred tax asset to an amount that is more likely than not to be realizable. Considerable judgment and the use of estimates are required when determining whether a valuation allowance is necessary and, if so, the amount of such valuation allowance. When evaluating the need for a valuation allowance, the Company considers many factors, including: the nature and character of the deferred tax assets and liabilities; taxable income in prior carryback years; future reversals of temporary differences; the length of time carryovers can be utilized; and any tax planning strategies the Company would employ to avoid a tax benefit from expiring unused.

For the nine months ended September 30, 2022, recent changes in market conditions, including rising interest rates, impacted the unrealized tax gains and losses in the available for sale securities portfolio resulting in deferred tax assets related to net unrealized tax capital losses. The deferred tax asset relates to the unrealized losses for which the carryforward period has not yet begun, and as such, when assessing its recoverability, we consider our ability and intent to hold the underlying securities to recovery. As of September 30, 2022, based on all available evidence, we concluded that a valuation allowance should be established on a portion of the deferred tax asset related to unrealized losses that are not more-likely-than-not to be realized. For the three months ending September 30, 2022, the Company recorded an increase of $179 million to the valuation allowance associated with the unrealized tax losses in the companies’ available for sale securities portfolio. For the nine months ended September 30, 2022, the company has recorded a total valuation allowance for $499 million associated with the unrealized tax losses in the companies' available for sale securities portfolio. All of the valuation allowance establishment was allocated to other comprehensive income.

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Commitments and Contingencies	9 Months Ended
	Sep. 30, 2022
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and ContingenciesThe Company and its subsidiaries are involved in litigation arising in the ordinary course of business. It is the opinion of management that the ultimate disposition of such litigation will not have a material adverse effect on the Company's financial condition. Jackson has been named in civil litigation proceedings, which appear to be substantially similar to other class action litigation brought against many life insurers including allegations of misconduct in the sale of insurance products. The Company accrues for legal contingencies once the contingency is deemed to be probable and reasonably estimable.At September 30, 2022, the Company had unfunded commitments related to its investments in limited partnerships and limited liability companies totaling $1,577 million. At September 30, 2022, unfunded commitments related to fixed-rate mortgage loans and other debt securities totaled $1,401 million.

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Other Related Party Transactions

9 Months Ended

Sep. 30, 2022

Related Party Transactions [Abstract]

Other Related Party Transactions

Other Related Party Transactions

The Company's investment management operation, PPM, provides investment services to certain Prudential affiliated entities. The Company recognized $7 million and $9 million of revenue during the three months ended September 30, 2022, and 2021, and $25 million and $28 million of revenue during the nine months ended September 30, 2022 and 2021, associated with these investment services. This revenue was included in fee income in the accompanying Condensed Consolidated Income Statements.

The investments in the segregated account related to the coinsurance agreement with Athene are subject to an investment management agreement between Jackson and Apollo Insurance Solutions Group LP (“Apollo”), which merged with Athene in 2022. Apollo management fees, which are calculated and paid monthly in arrears, are paid directly from the funds withheld account, administered by Athene. These payments were $21 million and $26 million during the three months ended September 30, 2022, and 2021, and $64 million and $80 million during the nine months ended September 30, 2022 and 2021, associated with these services.

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Operating Costs and Other Expenses

9 Months Ended

Sep. 30, 2022

Operating Costs And Other Expenses [Abstract]

Operating Costs and Other Expenses

Operating Costs and Other Expenses

The following table is a summary of the Company’s operating costs and other expenses (in millions):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Asset-based commission expenses	$	242	$	286	$	767	$	834
Other commission expenses	195		263		664		793
Sub-advisor expenses	80		101		252		289
General and administrative expenses	220		241		614		769
Deferral of acquisition costs	(145)		(192)		(496)		(595)
Total operating costs and other expenses	$	592	$	699	$	1,801	$	2,090

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Accumulated Other Comprehensive Income (Loss)

9 Months Ended

Sep. 30, 2022

Equity [Abstract]

Accumulated Other Comprehensive Income (Loss)

Accumulated Other Comprehensive Income (Loss)

The following table represents changes in the balance of AOCI, net of income tax, related to unrealized investment gains (losses) (in millions):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Balance, beginning of period (1)	$	(3,722)	$	2,390	$	1,744	$	3,821
Change in unrealized appreciation (depreciation) of investments	(2,383)		(415)		(9,254)		(2,068)
Change in unrealized appreciation (depreciation) - other	126		15		438		86
Change in deferred tax asset	313		86		1,413		429
Other comprehensive income (loss) before reclassifications	(1,944)		(314)		(7,403)		(1,553)
Reclassifications from AOCI, net of tax	(52)		(31)		(59)		(223)
Other comprehensive income (loss)	(1,996)		(345)		(7,462)		(1,776)
Balance, end of period (1)	$	(5,718)	$	2,045	$	(5,718)	$	2,045

(1)Includes $(2,316) million, $287 million and $481 million related to the investments held within the funds withheld account related to the Athene Reinsurance Transaction as of September 30, 2022, December 31, 2021 and September 30, 2021, respectively.

The following table represents amounts reclassified out of AOCI (in millions):

AOCI Components	Amounts Reclassified from AOCI				Affected Line Item in the Condensed Consolidated Income Statement
	Three Months Ended September 30,
	2022		2021
Net unrealized investment gain (loss):
Net realized gain (loss) on investments	$	(47)	$	(45)	Net gains (losses) on derivatives and investments
Other impaired securities	(25)		—		Net gains (losses) on derivatives and investments
Net unrealized gain (loss)	(72)		(45)
Amortization of deferred acquisition costs	5		5
Reclassifications, before income taxes	(67)		(40)
Income tax expense (benefit)	(15)		(9)
Reclassifications, net of income taxes	$	(52)	$	(31)

AOCI Components	Amounts Reclassified from AOCI				Affected Line Item in the Condensed Consolidated Income Statement
	Nine Months Ended September 30,
	2022		2021
Net unrealized investment gain (loss):
Net realized gain (loss) on investments	$	(85)	$	(313)	Net gains (losses) on derivatives and investments
Other impaired securities	5		—		Net gains (losses) on derivatives and investments
Net unrealized gain (loss)	(80)		(313)
Amortization of deferred acquisition costs	5		28
Reclassifications, before income taxes	(75)		(285)
Income tax expense (benefit)	(16)		(62)
Reclassifications, net of income taxes	$	(59)	$	(223)

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Equity

9 Months Ended

Sep. 30, 2022

Equity [Abstract]

Equity

Equity

Common Stock

The Company had two classes of common stock: Class A Common Stock and Class B Common Stock. Both classes had a par value of $0.01 per share. Each share of Class A Common Stock is entitled to one vote per share. Each share of Class B Common Stock was entitled to one-tenth of one vote per share. Except for voting rights, the Company’s Class A Common Stock and Class B Common Stock had the same dividend rights, were equal in all other respects, and were otherwise treated as if they were one class of shares. On June 9, 2022, our shareholders approved the Third Amended and Restated Certificate of Incorporation, which amended and restated the Second Amended and Restated Certificate of Incorporation to eliminate the Class B Common Stock. At September 30, 2022 and December 31, 2021, the Company was authorized to issue up to 900 million shares of common stock (formerly known as the Class A Common Stock). At September 30, 2022 and December 31, 2021, the Company was authorized to issue nil and 100 million shares of Class B Common Stock, respectively.

Share Repurchase Program

On February 28, 2022, our Board of Directors authorized an increase of $300 million in our existing authorization to repurchase shares of our outstanding Class A Common Stock as part of the Company's share repurchase program. As of November 3, 2022, the Company had remaining authority to purchase $119 million of its common shares. The Company expects to repurchase shares from time to time in the open market or in privately negotiated transactions. The timing, form and amount of the share repurchases under the program are at the discretion of management and will depend on a variety of factors, including funds available at the parent company, other potential uses for such funds, market conditions, the Company's capital position, legal requirements and other factors. The repurchase program may be modified, extended or terminated by the Board at any time. It does not have an expiration date. There can be no assurance that we will continue share repurchases or approve any increase to, or approve any new, stock repurchase program, or as to the amount of any repurchases made pursuant to such programs.

The following table represents share repurchase activities as part of this share repurchase program:

Period	Number of Shares Repurchased	Total Payments  (in millions)		Average Price Paid Per Share
2021(October 1 - December 31)	5,778,649	$	211	$	36.51
Total 2021	5,778,649	211		36.51
2022 (January 1- March 31)	3,433,610	140		40.84
2022 (April 1- June 30)	1,870,854	66		35.15
2022 (July 1- September 30)	1,200,000	39		32.75
2022 (October 1 - November 3)	792,105	25		31.58
Total 2022	7,296,569	$	270	$	37.04

The following table represents changes in the balance of common stock outstanding:

	Common Stock Issued	Treasury Stock		Total Common Stock Outstanding
Shares at December 31, 2021	94,464,343	(5,778,649)		88,685,694
Share-based compensation programs	9,675	1,476,037	(1)	1,485,712
Shares repurchased under repurchase program	—	(6,504,464)		(6,504,464)
Shares at September 30, 2022	94,474,018	(10,807,076)		83,666,942

(1) Represents net shares issued from treasury stock pursuant to the Company’s share-based compensation programs.

On December 13, 2021, we repurchased 2,242,516 shares of our Class A Common Stock from Prudential and 1,134,767 shares of our Class A Common Stock from Athene. The price per share in the repurchase was $37.01. On December 13, 2021, Athene converted a total of 725,623 shares of its Class B common stock to Class A Common Stock on a one-for-one basis. On February 1, 2022, Athene converted the remaining 638,861 shares of its Class B Common Stock to Class A Common Stock on a one-for-one basis.

On March 12, 2022, we repurchased 750,000 shares of our Class A Common Stock from Athene. The price per share in the repurchase was $37.89.

Dividends to Shareholders

Any declaration of cash dividends will be at the discretion of JFI’s Board of Directors and will depend on our financial condition, earnings, liquidity and capital requirements, regulatory constraints, level of indebtedness, contractual restrictions with respect to paying cash dividends, restrictions imposed by Delaware law, general business conditions and any other factors that JFI’s Board of Directors deems relevant in making any such determination. Therefore, there can be no assurance that we will pay any cash dividends to holders of our common stock or as to the amount of any such cash dividend.

The following table presents declaration date, record date, payment date and dividends paid on per JFI’s common shares:

Quarter Ended	Declaration Date	Record Date	Payment Date	Dividends Paid Per Share
03/31/2022	February 28, 2022	March 14, 2022	March 23, 2022	$0.55
06/30/2022	May 9, 2022	June 2, 2022	June 16, 2022	$0.55
09/30/2022	August 8, 2022	September 1, 2022	September 15, 2022	$0.55

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Earnings Per Share

9 Months Ended

Sep. 30, 2022

Earnings Per Share [Abstract]

Earnings Per Share

Earnings Per Share

Basic earnings per share is calculated by dividing net income (loss) attributable to Jackson Financial Inc. shareholders by the weighted-average number of Class A and Class B common shares outstanding during the period. Except for voting rights, the Company’s Class A Common Stock and Class B Common Stock had the same dividend rights, were equal in all respects, and were otherwise treated as if they were one class of shares, including the treatment for the earnings per share calculations. Diluted earnings per share is calculated by dividing the net income (loss) attributable to Jackson Financial Inc. shareholders, by the weighted-average number of shares of Class A Common Stock and Class B Common Stock outstanding for the period, plus shares representing the dilutive effect of share-based awards. For the three and nine months ended September 30, 2021, the Company did not have any outstanding share-based awards involving the issuance of the Company’s equity and, therefore, no impact to the diluted earnings per share calculation. The Company grants share-based awards subject to vesting provisions as provided in the Company's 2021 Omnibus Incentive Plan, which have a dilutive effect. See Note 16 for further description of share-based awards in the Company's 2021 Annual Report.

The following table sets forth the calculation of earnings per common share:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
	(in millions, except share and per share data)
Net income (loss) attributable to Jackson Financial Inc.	$	1,479	$	206	$	6,407	$	2,598
Weighted average shares of common stock outstanding - basic	85,098,192		94,464,343		86,126,710		94,464,343
Dilutive common shares	2,797,727		—		3,198,774		—
Weighted average shares of common stock outstanding - diluted	87,895,919		94,464,343		89,325,484		94,464,343
Earnings per share—common stock
Basic	$	17.38	$	2.18	$	74.39	$	27.50
Diluted	$	16.83	$	2.18	$	71.73	$	27.50

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Revision and Reclassifications of Prior Period Financial Statements

9 Months Ended

Sep. 30, 2022

Accounting Changes and Error Corrections [Abstract]

Revision and Reclassifications of Prior Period Financial Statements

Revision and Reclassifications of Prior Period Financial Statements

The Company identified errors related to the classification of certain balances and amounts in line items of consolidated balance sheets, income statements, and statements of cash flows of its previously issued consolidated financial statements. These errors consist of balances and amounts related to deferred sales inducement assets, liabilities for certain life-contingent annuities, sub-advisor fee expenses, and other operating expenses and do not impact previously reported net income, total equity, or net cash flows.

Management evaluated these errors and the impact to previously issued financial statements based upon SEC Staff Accounting Bulletin No. 99, Materiality, which has since been codified in Accounting Standards Codification (“ASC”) 250, Accounting Changes and Error Corrections. Based on this evaluation, management has concluded that the adjustments and impact of these errors are not material to any previously issued quarterly or annual financial statements. However, to improve the consistency and comparability of the financial statements, management has revised previously reported financial statement line items and related disclosures in this quarterly report.

In addition, certain other immaterial amounts in prior period financial statements have been reclassified to conform to the current period presentation.

The following tables present condensed consolidated balance sheet and statement of income line items affected by the revisions and reclassifications of previously reported financial statements, detailing amounts previously reported, the impact upon those line items due to revisions and reclassifications and amounts as currently revised within the financial statements. For the nine months ended September 30, 2021 the reclassification also impacted the condensed consolidated statement of cash flows in the amount of $42 million, which increased financing cash flows offset by a decrease in operating cash flows. In addition, there were revisions reflected in our disclosures throughout this Form 10-Q.

Condensed Consolidated Balance Sheets (in millions)	As Previously Reported		Impact of Revisions and Reclassifications		As Revised
	12/31/21		12/31/21		12/31/21
Assets
Other assets	$	853	$	75	$	928
Total assets	375,484		75		375,559
Liabilities
Reserves for future policy benefits and claims payable	17,629		1,038		18,667
Other contract holder funds	59,689		(963)		58,726
Notes issued by consolidated variable interest entities, at fair value under fair value option	—		1,404		1,404
Other liabilities	3,944		(1,404)		2,540
Total liabilities	364,410		75		364,485
Total liabilities and equity	$	375,484	$	75	$	375,559

Condensed Consolidated Income Statements  (in millions)	As Previously Reported				Impact of Revisions and Reclassifications				As Revised
	Three Months Ended		Nine Months Ended		Three Months Ended		Nine Months Ended		Three Months Ended		Nine Months Ended
	9/30/21		9/30/21		9/30/21		9/30/21		9/30/21		9/30/21
Revenues
Fee income	$	1,962	$	5,674	$	101	$	289	$	2,063	$	5,963
Premium	35		100		2		15		37		115
Net investment income	852		2,576		(15)		(8)		837		2,568
Total revenues	1,487		7,226		88		296		1,575		7,522
Benefits and Expenses
Death, other policy benefits and change in policy reserves, net of deferrals	394		887		11		46		405		933
Interest credited on other contract holder funds, net of deferrals and amortization	217		657		(8)		(27)		209		630
Operating costs and other expenses, net of deferrals	614		1,812		85		278		699		2,090
Amortization of deferred acquisition costs	4		552		—		(1)		4		551
Total benefits and expenses	1,235		3,927		88		296		1,323		4,223
Net income (loss)	$	268	$	2,784	$	—	$	—	$	268	$	2,784

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Subsequent Events

9 Months Ended

Sep. 30, 2022

Subsequent Events [Abstract]

Subsequent Events

Subsequent Events

The Company has evaluated subsequent events through the date these Condensed Consolidated Financial Statements were issued.

Dividends Declared to Shareholders

On November 7, 2022, our Board of Directors approved a fourth quarter cash dividend on JFI's common stock, $0.55 per share, payable on December 15, 2022, to shareholders of record on December 1, 2022.

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New Accounting Standards (Policies)

9 Months Ended

Sep. 30, 2022

Accounting Policies [Abstract]

Basis of Presentation

The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information. Accordingly, certain financial information that is normally included in annual financial statements prepared in accordance with GAAP, but not required for interim reporting purposes, has been condensed or omitted. These Condensed Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements and the related notes included in our Annual Report on Form 10-K for the year ended December 31, 2021, as filed with the SEC on March 7, 2022, (the "2021 Annual Report"). The condensed consolidated financial information as of December 31, 2021, included herein, has been derived from the audited Consolidated Financial Statements in the 2021 Annual Report, although certain amounts have been reclassified to conform to the 2022 presentation.

Certain accounting policies, which significantly affect the determination of financial condition, results of operations and cash flows, are summarized in the Notes to Consolidated Financial Statements in the Company’s 2021 Annual Report.

In the opinion of management, these financial statements include all normal recurring adjustments necessary for a fair presentation of the Company’s results. Operating results for the three and nine months ended September 30, 2022, are not necessarily indicative of the results that may be expected for the full year ending December 31, 2022.

Consolidation

All material intercompany accounts and transactions have been eliminated in consolidation.

Use of Estimates

The preparation of the Condensed Consolidated Financial Statements in conformity with GAAP requires the use of estimates and assumptions about future events that affect the amounts reported in the Condensed Consolidated Financial Statements and the accompanying notes. Significant estimates or assumptions, as further discussed in the notes, include:

•Valuation of investments and derivative instruments, including fair values of securities deemed to be in an illiquid market and the determination of when an impairment is necessary;

•Assessments as to whether certain entities are variable interest entities, the existence of reconsideration events and the determination of which party, if any, should consolidate the entity;

•Assumptions impacting estimated future gross profits, including policyholder behavior, mortality rates, expenses, projected hedging costs, investment returns and policy crediting rates, used in the calculation of amortization of deferred acquisition costs;

•Assumptions used in calculating policy reserves and liabilities, including policyholder behavior, mortality rates, expenses, investment returns and policy crediting rates;

•Assumptions as to future earnings levels being sufficient to realize deferred tax benefits;

•Estimates related to expectations of credit losses on certain financial assets and off-balance sheet exposures;

•Assumptions and estimates associated with the Company’s tax positions, including an estimate of the dividends received deduction, which impact the amount of recognized tax benefits recorded by the Company; and

•Assumptions used in calculating the value of guaranteed benefits.

These estimates and assumptions are based on management’s best estimates and judgments. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors deemed appropriate. As facts and circumstances dictate, these estimates and assumptions may be adjusted. Since future events and their effects cannot be determined with precision, actual results could differ significantly from these estimates. Changes in estimates, including those resulting from continuing changes in the economic environment, will be reflected in the consolidated financial statements in the periods the estimates are changed.

Revision of Prior Period Financial Statements

The Company identified errors related to the classification of certain balances and amounts in the line items of the consolidated balance sheets and consolidated income statements. These errors resulted in the revision of balances and amounts related to deferred sales inducement assets, liabilities for certain life-contingent annuities, sub-advisor fee expenses, and other operating expense items that impacted previously issued consolidated financial statements. The impact of these errors to the current and the prior periods' consolidated financial statements were not considered to be material and had no impact on shareholders' equity or net income. However, to improve the consistency and comparability of the financial statements, management revised the financial statements and related disclosures in this quarterly report. See Note 20 to the Notes to Condensed Consolidated Financial Statements for details of the revisions.

New Accounting Standards

Changes in Accounting Principles – Adopted in Current Year

In March 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” The new guidance provides optional expedients for applying GAAP to contracts and other transactions affected by reference rate reform and is effective for contract modifications made between March 12, 2020 and December 31, 2022. If certain criteria are met, an entity will not be required to remeasure or reassess contracts impacted by reference rate reform. The practical expedient allowed by this standard was elected and is being applied prospectively by the Company as reference rate reform unfolds. The contracts modified to date met the criteria for the practical expedient and therefore had no material impact on the Company’s consolidated financial statements. The Company will continue to evaluate the impacts of reference rate reform on contract modifications and other transactions through December 31, 2022.

Changes in Accounting Principles – Issued but Not Yet Adopted

In August 2018, the FASB issued ASU 2018-12, “Targeted Improvements to the Accounting for Long-Duration Contracts,” which includes changes to the existing recognition, measurement, presentation and disclosure requirements for long-duration contracts issued by an insurance entity. ASU No. 2018-12 is effective for fiscal years beginning after December 15, 2022.

The amendments in ASU 2018-12 contain four significant changes:

1.Market risk benefits: market risk benefits, a new term for certain contracts or features that provide for potential benefits in addition to the account balance which expose us to other than nominal market risk (for example, certain guaranteed benefits on annuity contracts, including guaranteed minimum withdrawal benefits and guaranteed minimum death benefits on variable annuities), will be measured at fair value. Changes in fair value will be recorded and presented separately within the income statement, with the exception of changes in fair value due to instrument-specific credit risk, which will be recognized in other comprehensive income (loss) (“OCI”). See Note 10 for more information regarding guaranteed benefits;

2.Deferred acquisition costs: deferred acquisition costs (“DAC”) will be amortized on a constant-level basis, independent of profitability on the underlying business;

3.Liability for future policy benefits: annual review and, if necessary, update of cash flow assumptions used to measure the liability for future policy benefits for nonparticipating traditional and limited-payment insurance contracts will be required. These liabilities will be discounted using an upper-medium grade fixed income instrument yield which will be updated quarterly, with related changes in the liability recognized in OCI; and

4.Enhanced disclosures: enhanced disclosures, including disaggregated roll-forwards of certain balance sheet accounts that provide information about actual and expected cash flows, as well as information about significant inputs, judgments, assumptions and methods used in measurement, will be required. The enhanced disclosures are intended to improve the ability of users of the financial statements to evaluate the timing, amount, and uncertainty of cash flows arising from long-duration contracts.

The Company will adopt the standard effective January 1, 2023, with a transition date of January 1, 2021, using a modified retrospective approach, except for market risk benefits for which we will apply a full retrospective transition approach. Under the modified retrospective approach, the Company will apply the guidance to contracts in force on the transition date on the basis of their existing carrying value, using updated future cash flow assumptions, and eliminate certain related amounts in accumulated other comprehensive income (loss) (“AOCI”). Under the full retrospective transition approach, the Company will apply the guidance as of the earliest period presented, using actual historical experience information as of contract inception, as if the accounting principle had always been applied.

In accordance with its established governance framework, the Company continues to progress with implementation efforts including determining significant accounting policy decisions, modifying actuarial valuation models, revising reporting processes, and updating internal controls over financial reporting.

Given the nature and extent of the required changes, the adoption of this standard is expected to have a significant impact on the Company’s consolidated financial statements and disclosures. Based upon the elected transition methods, the Company currently estimates the adoption of the standard will result in a decrease of between approximately $2 billion and $4 billion in the Company’s total equity at the transition date of January 1, 2021. This estimate is based on the economic conditions experienced at the transition date.

The most significant drivers of the transition adjustment are expected to be:

•changes to the measurement of certain benefits currently accounted for as insurance benefits (e.g., guaranteed minimum death benefits on variable annuities) which will be classified as market risk benefits upon adoption and remeasured at fair value, the impact of which is highly dependent on market conditions, including interest rates;

•changes to the discount rate used to measure liabilities for future policyholder benefits that will be remeasured using current upper-medium grade fixed-income instrument yields, which are generally considered to be those on single-A rated public corporate debt; and

•the removal of certain balances recorded in AOCI related to changes in unrealized appreciation (depreciation) on investments.

In March 2022, the FASB issued ASU 2022-02, “Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures.” The new guidance eliminates the accounting guidance for troubled debt restructurings by creditors, and instead requires an entity to evaluate whether a modification represents a new loan or a continuation of an existing loan. The amendments also enhance disclosure requirements for certain loan refinancings and restructurings by creditors when a borrower is experiencing financial difficulty. New guidance for vintage disclosures requires that current-period gross write-offs be disclosed by year of origination for financing receivables and net investments in leases that fall within scope of the current expected credit loss model. The amendments in this update are effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Updates should be applied prospectively. However, an entity has the option to apply the modified retrospective method related to the recognition and measurements of troubled debt restructurings. Early adoption is permitted. The Company does not anticipate a significant impact when adopting the new guidance and does not plan to early adopt.

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Segment Information (Tables)

9 Months Ended

Sep. 30, 2022

Segment Reporting [Abstract]

Certain Information with Respect to Segments

Set forth in the tables below is certain information with respect to the Company’s segments, as described above (in millions):

Three Months Ended September 30, 2022	Retail Annuities		Institutional Products		Closed Life and Annuity Blocks		Corporate and  Other		Total Consolidated
Operating Revenues
Fee income	$	1,002	$	—	$	118	$	13	$	1,133
Premiums	3		—		36		—		39
Net investment income	72		80		166		22		340
Income (loss) on operating derivatives	2		(8)		7		2		3
Other income	11		—		8		—		19
Total Operating Revenues	1,090		72		335		37		1,534
Operating Benefits and Expenses
Death, other policy benefits and change in policy     reserves, net of deferrals	5		—		176		—		181
Interest credited on other contract holder funds, net     of deferrals and amortization	72		51		101		—		224
Interest expense	8		—		—		21		29
Operating costs and other expenses, net of deferrals	541		1		22		28		592
Amortization of deferred acquisition costs	100		—		3		1		104
Total Operating Benefits and Expenses	726		52		302		50		1,130
Pretax Adjusted Operating Earnings	$	364	$	20	$	33	$	(13)	$	404

Three Months Ended September 30, 2021	Retail Annuities		Institutional Products		Closed Life and Annuity Blocks		Corporate and  Other		Total Consolidated
Operating Revenues
Fee income	$	1,194	$	—	$	123	$	15	$	1,332
Premiums	2		—		39		—		41
Net investment income	180		69		245		(23)		471
Income (loss) on operating derivatives	13		(1)		18		8		38
Other income	12		—		7		(2)		17
Total Operating Revenues	1,401		68		432		(2)		1,899
Operating Benefits and Expenses
Death, other policy benefits and change in policy     reserves, net of deferrals	38		—		216		—		254
Interest credited on other contract holder funds, net     of deferrals and amortization	56		47		106		—		209
Interest expense	6		(2)		—		2		6
Operating costs and other expenses, net of deferrals	614		2		38		31		685
Amortization of deferred acquisition costs	160		—		4		10		174
Total Operating Benefits and Expenses	874		47		364		43		1,328
Pretax Adjusted Operating Earnings	$	527	$	21	$	68	$	(45)	$	571

Nine Months Ended September 30, 2022	Retail Annuities		Institutional Products		Closed Life and Annuity Blocks		Corporate and  Other		Total Consolidated
Operating Revenues
Fee income	$	3,144	$	—	$	358	$	43	$	3,545
Premiums	6		—		108		—		114
Net investment income	299		216		522		65		1,102
Income (loss) on operating derivatives	20		(13)		35		20		62
Other income	33		—		25		2		60
Total Operating Revenues	3,502		203		1,048		130		4,883
Operating Benefits and Expenses
Death, other policy benefits and change in policy     reserves, net of deferrals	54		—		636		—		690
Interest credited on other contract holder funds, net     of deferrals and amortization	191		137		300		—		628
Interest expense	19		—		—		54		73
Operating costs and other expenses, net of deferrals	1,648		4		74		74		1,800
Amortization of deferred acquisition costs	602		—		7		18		627
Total Operating Benefits and Expenses	2,514		141		1,017		146		3,818
Pretax Adjusted Operating Earnings	$	988	$	62	$	31	$	(16)	$	1,065

Nine Months Ended September 30, 2021	Retail Annuities		Institutional Products		Closed Life and Annuity Blocks		Corporate and  Other		Total Consolidated
Operating Revenues
Fee income	$	3,433	$	—	$	371	$	49	$	3,853
Premiums	15		—		110		—		125
Net investment income	541		189		723		9		1,462
Income (loss) on operating derivatives	42		(1)		56		20		117
Other income	35		—		29		6		70
Total Operating Revenues	4,066		188		1,289		84		5,627
Operating Benefits and Expenses
Death, other policy benefits and change in policy     reserves, net of deferrals	90		—		629		—		719
Interest credited on other contract holder funds, net     of deferrals and amortization	168		147		315		—		630
Interest expense	17		—		—		2		19
Operating costs and other expenses, net of deferrals	1,780		4		131		111		2,026
Amortization of deferred acquisition costs	232		—		11		25		268
Total Operating Benefits and Expenses	2,287		151		1,086		138		3,662
Pretax Adjusted Operating Earnings	$	1,779	$	37	$	203	$	(54)	$	1,965

Reconciliation of Segment Operating Revenues to Total Revenues

The following table summarizes the reconciling items from the non-GAAP measure of operating revenues to the GAAP measure of total revenues attributable to the Company (in millions):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Total operating revenues	$	1,534	$	1,899	$	4,883	$	5,627
Fees attributed to variable annuity benefit reserves	771		728		2,300		2,101
Net gains (losses) on derivatives and investments	1,416		(1,418)		6,829		(1,311)
Net investment income (loss) related to noncontrolling interests	(11)		62		51		186
Consolidated investments	(1)		4		(68)		35
Net investment income on funds withheld assets	313		300		937		884
Total revenues (1)	$	4,022	$	1,575	$	14,932	$	7,522

(1) Substantially all the Company's revenues originated in the United States. There were no individual customers that exceeded 10% of total revenues.

Reconciliation of Segment Operating Benefits and Expenses to Total Benefits and Expenses

The following table summarizes the reconciling items from the non-GAAP measure of operating benefits and expenses to the GAAP measure of total benefits and expenses attributable to the Company (in millions):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Total operating benefits and expenses	$	1,130	$	1,328	$	3,818	$	3,662
Benefits attributed to variable annuity benefit reserves	65		25		158		91
Amortization of DAC and DSI related to non-operating revenues and expenses	458		(169)		1,648		284
Statement of Position 03-1 reserve movements	341		127		1,242		123
Other items	1		12		2		63
Total benefits and expenses	$	1,995	$	1,323	$	6,868	$	4,223

Reconciliation of Segment Pretax Adjusted Operating Earnings to Net Income

The following table summarizes the reconciling items, net of deferred acquisition costs and deferred sales inducements, from the non-GAAP measure of pretax adjusted operating earnings to the GAAP measure of net income attributable to the Company (in millions):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Pretax adjusted operating earnings	$	404	$	571	$	1,065	$	1,965
Non-operating adjustments (income) loss:
Guaranteed benefits and hedging results:
Fees attributable to guarantee benefit reserves	771		728		2,300		2,101
Net movement in freestanding derivatives	(253)		(493)		1,118		(3,966)
Net reserve and embedded derivative movements	714		(997)		1,781		2,222
DAC and DSI impact	(458)		169		(1,648)		(284)
Assumption changes	—		—		—		—
Total guaranteed benefits and hedging results	774		(593)		3,551		73
Net realized investment gains (losses) including change in fair value of funds withheld embedded derivative	549		(79)		2,529		219
Net investment income on funds withheld assets	313		300		937		884
Other items	(2)		(9)		(69)		(28)
Pretax income (loss) attributable to Jackson Financial Inc.	2,038		190		8,013		3,113
Income tax expense (benefit)	559		(16)		1,606		515
Net income (loss) attributable to Jackson Financial Inc.	$	1,479	$	206	$	6,407	$	2,598

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Investments (Tables)

9 Months Ended

Sep. 30, 2022

Investments, Debt and Equity Securities [Abstract]

Schedule of Composition of Fair Value of Debt Securities Classified by Rating

At September 30, 2022 and December 31, 2021, the carrying value of investments rated by the Company’s consolidated investment advisor totaled $72 million and $13 million, respectively.

	Percent of Total Debt Securities Carrying Value
	September 30, 2022	December 31, 2021
Investment Rating
AAA	15.3%	14.5%
AA	8.8%	9.6%
A	29.9%	28.5%
BBB	38.2%	40.9%
Investment grade	92.2%	93.5%
BB	4.0%	3.6%
B and below	3.8%	2.9%
Below investment grade	7.8%	6.5%
Total debt securities	100.0%	100.0%

Debt Securities - Amortized Cost, Gross Unrealized Gains and Losses, Fair Value and Allowance for Credit Loss and Maturities

At September 30, 2022 and December 31, 2021, the amortized cost, allowance for credit loss ("ACL"), gross unrealized gains and losses, and fair value of debt securities, including trading securities and securities carried at fair value under the fair value option, were as follows (in millions):

				Allowance		Gross		Gross
		Amortized		for		Unrealized		Unrealized		Fair
September 30, 2022		Cost (1)		Credit Loss		Gains		Losses		Value
	U.S. government securities	$	5,064	$	—	$	—	$	1,008	$	4,056
	Other government securities	1,712		3		2		262		1,449
	Public utilities	5,901		—		19		811		5,109
	Corporate securities	29,748		23		30		4,360		25,395
	Residential mortgage-backed	492		5		20		52		455
	Commercial mortgage-backed	1,818		—		—		173		1,645
	Other asset-backed securities	6,359		—		9		570		5,798
	Total debt securities	$	51,094	$	31	$	80	$	7,236	$	43,907
				Allowance		Gross		Gross
		Amortized		for		Unrealized		Unrealized		Fair
December 31, 2021		Cost (1)		Credit Loss		Gains		Losses		Value
	U.S. government securities	$	4,525	$	—	$	97	$	301	$	4,321
	Other government securities	1,489		—		147		17		1,619
	Public utilities	6,069		—		671		25		6,715
	Corporate securities	29,701		—		1,682		237		31,146
	Residential mortgage-backed	528		2		46		3		569
	Commercial mortgage-backed	1,968		—		76		6		2,038
	Other asset-backed securities	6,926		7		71		23		6,967
	Total debt securities	$	51,206	$	9	$	2,790	$	612	$	53,375
	(1) Amortized cost, apart from the carrying value for securities carried at fair value under the fair value option and trading securities.

The amortized cost, ACL, gross unrealized gains and losses, and fair value of debt securities at September 30, 2022, by contractual maturity, are shown below (in millions). Actual maturities may differ from contractual maturities where securities can be called or prepaid with or without early redemption penalties.

			Allowance		Gross		Gross
	Amortized		for		Unrealized		Unrealized		Fair
	Cost (1)		Credit Loss		Gains		Losses		Value
Due in 1 year or less	$	1,333	$	—	$	1	$	6	$	1,328
Due after 1 year through 5 years	9,655		3		8		497		9,163
Due after 5 years through 10 years	14,158		20		9		1,896		12,251
Due after 10 years through 20 years	9,260		3		32		1,842		7,447
Due after 20 years	8,019		—		1		2,200		5,820
Residential mortgage-backed	492		5		20		52		455
Commercial mortgage-backed	1,818		—		—		173		1,645
Other asset-backed securities	6,359		—		9		570		5,798
Total	$	51,094	$	31	$	80	$	7,236	$	43,907

(1) Amortized cost, apart from the carrying value for securities carried at fair value under the fair value option and trading securities.

Residential Mortgage-Backed Securities

The Company’s non-agency RMBS include investments in securities backed by prime, Alt-A, and subprime loans, as follows (in millions):

			Allowance		Gross		Gross
	Amortized		for		Unrealized		Unrealized		Fair
September 30, 2022	Cost (1)		Credit Loss		Gains		Losses		Value
Prime	$	209	$	3	$	2	$	25	$	183
Alt-A	83		2		9		7		83
Subprime	29		—		9		—		38
Total non-agency RMBS	$	321	$	5	$	20	$	32	$	304
			Allowance		Gross		Gross
	Amortized		for		Unrealized		Unrealized		Fair
December 31, 2021	Cost (1)		Credit Loss		Gains		Losses		Value
Prime	$	228	$	1	$	10	$	2	$	235
Alt-A	94		1		21		—		114
Subprime	39		—		13		—		52
Total non-agency RMBS	$	361	$	2	$	44	$	2	$	401
(1) Amortized cost, apart from carrying value for securities carried at fair value under the fair value option and trading securities.

Debt Securities in Continuous Unrealized Loss Position

The following table summarizes the number of securities, fair value and the gross unrealized losses of debt securities, aggregated by investment category and length of time that individual debt securities have been in a continuous loss position (dollars in millions):

	September 30, 2022					December 31, 2021
	Less than 12 months					Less than 12 months
	Gross		Fair Value			Gross		Fair Value
	Unrealized				# of	Unrealized				# of
	Losses				securities	Losses				securities
U.S. government securities	$	276	$	2,260	41	$	2	$	107	16
Other government securities	256		1,371		154	17		252		23
Public utilities	659		4,476		530	17		721		93
Corporate securities	3,217		19,878		2,649	180		6,343		728
Residential mortgage-backed	40		293		217	3		174		109
Commercial mortgage-backed	146		1,537		192	5		314		37
Other asset-backed securities	519		4,912		610	22		3,224		338
Total temporarily impaired securities	$	5,113	$	34,727	4,393	$	246	$	11,135	1,344
	12 months or longer					12 months or longer
	Gross		Fair Value			Gross		Fair Value
	Unrealized				# of	Unrealized				# of
	Losses				securities	Losses				securities
U.S. government securities	$	732	$	1,634	8	$	299	$	3,190	7
Other government securities	6		47		10	—		4		2
Public utilities	152		336		55	7		99		8
Corporate securities	1,143		2,704		396	58		661		69
Residential mortgage-backed	12		71		75	—		11		12
Commercial mortgage-backed	27		95		16	1		30		3
Other asset-backed securities	51		309		41	1		11		3
Total temporarily impaired securities	$	2,123	$	5,196	601	$	366	$	4,006	104
	Total					Total
	Gross					Gross
	Unrealized		Fair		# of	Unrealized		Fair		# of
	Losses		Value		securities (1)	Losses		Value		securities (1)
U.S. government securities	$	1,008	$	3,894	43	$	301	$	3,297	23
Other government securities	262		1,418		164	17		256		25
Public utilities	811		4,812		575	24		820		101
Corporate securities	4,360		22,582		2,936	238		7,004		797
Residential mortgage-backed	52		364		292	3		185		121
Commercial mortgage-backed	173		1,632		207	6		344		40
Other asset-backed securities	570		5,221		651	23		3,235		341
Total temporarily impaired securities	$	7,236	$	39,923	4,868	$	612	$	15,141	1,448

(1) Certain securities contain multiple lots and fit the criteria of both aging groups.

Rollforward of Debt Securities Allowance for Credit Loss

The roll forward of the allowance for credit loss for available-for-sale securities by sector is as follows (in millions):

Three Months Ended September 30, 2022	US government securities		Other government securities		Public utilities		Corporate securities		Residential mortgage-backed		Commercial mortgage-backed		Other asset-backed securities		Total
Balance at July 1, 2022	$	—	$	6	$	1	$	30	$	6	$	—	$	—	$	43
Additions for which credit loss was not previously recorded	—		—		—		12		1		—		—		13
Changes for securities with previously recorded credit loss	—		—		(1)		(8)		(2)		—		—		(11)
Additions for purchases of PCD debt securities (1)	—		—		—		—		—		—		—		—
Reductions from charge-offs	—		—		—		—		—		—		—		—
Reductions for securities disposed	—		(3)		—		—		—		—		—		(3)
Securities intended/required to be sold before recovery of amortized cost basis	—		—		—		(11)		—		—		—		(11)
Balance at September 30, 2022 (2)	$	—	$	3	$	—	$	23	$	5	$	—	$	—	$	31

Three Months Ended September 30, 2021	US government securities		Other government securities		Public utilities		Corporate securities		Residential mortgage-backed		Commercial mortgage-backed		Other asset-backed securities		Total
Balance at July 1, 2021	$	—	$	—	$	—	$	—	$	1	$	—	$	6	$	7
Additions for which credit loss was not previously recorded	—		—		—		—		1		—		—		1
Changes for securities with previously recorded credit loss	—		—		—		—		—		—		17		17
Additions for purchases of PCD debt securities (1)	—		—		—		—		—		—		—		—
Reductions from charge-offs	—		—		—		—		—		—		—		—
Reductions for securities disposed	—		—		—		—		—		—		(16)		(16)
Securities intended/required to be sold before recovery of amortized cost basis	—		—		—		—		—		—		—		—
Balance at September 30, 2021 (2)	$	—	$	—	$	—	$	—	$	2	$	—	$	7	$	9

Nine Months Ended September 30, 2022	US government securities		Other government securities		Public utilities		Corporate securities		Residential mortgage-backed		Commercial mortgage-backed		Other asset-backed securities		Total
Balance at January 1, 2022	$	—	$	—	$	—	$	—	$	2	$	—	$	7	$	9
Additions for which credit loss was not previously recorded	—		6		1		42		3		—		—		52
Changes for securities with previously recorded credit loss	—		—		(1)		(3)		1		—		(7)		(10)
Additions for purchases of PCD debt securities (1)	—		—		—		—		—		—		—		—
Reductions from charge-offs	—		—		—		—		—		—		—		—
Reductions for securities disposed	—		(3)		—		—		(1)		—		—		(4)
Securities intended/required to be sold before recovery of amortized cost basis	—		—		—		(16)		—		—		—		(16)
Balance at September 30, 2022 (2)	$	—	$	3	$	—	$	23	$	5	$	—	$	—	$	31

Nine Months Ended September 30, 2021	US government securities		Other government securities		Public utilities		Corporate securities		Residential mortgage-backed		Commercial mortgage-backed		Other asset-backed securities		Total
Balance at January 1, 2021	$	—	$	—	$	—	$	—	$	—	$	—	$	14	$	14
Additions for which credit loss was not previously recorded	—		—		—		—		2		—		—		2
Changes for securities with previously recorded credit loss	—		—		—		—		—		—		9		9
Additions for purchases of PCD debt securities (1)	—		—		—		—		—		—		—		—
Reductions from charge-offs	—		—		—		—		—		—		—		—
Reductions for securities disposed	—		—		—		—		—		—		(16)		(16)
Securities intended/required to be sold before recovery of amortized cost basis	—		—		—		—		—		—		—		—
Balance at September 30, 2021 (2)	$	—	$	—	$	—	$	—	$	2	$	—	$	7	$	9

(1) Represents purchased credit-deteriorated ("PCD") fixed maturity available-for-sale securities.

(2) Accrued interest receivable on debt securities totaled $414 million and $397 million as of September 30, 2022 and 2021, respectively, and was excluded from the determination of credit losses for the three and nine months ended September 30, 2022 and 2021.

Sources of Net Investment Income

The sources of net investment income were as follows (in millions):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Debt securities (1)	$	306	$	272	$	792	$	872
Equity securities	(25)		—		(18)		6
Mortgage loans	70		79		211		242
Policy loans	18		20		52		55
Limited partnerships	(7)		193		151		586
Other investment income	14		2		25		10
Total investment income excluding funds withheld assets	376		566		1,213		1,771
Net investment income on funds withheld assets (see Note 8)	313		300		937		884
Investment expenses:
Derivative trading commission	(3)		(1)		(5)		(2)
Depreciation on real estate	(2)		(4)		(8)		(8)
Expenses related to consolidated entities (2)	(26)		(8)		(62)		(24)
Other investment income (expense) (3)	(18)		(16)		(53)		(53)
Total investment expenses	(49)		(29)		(128)		(87)
Net investment income	$	640	$	837	$	2,022	$	2,568

(1) Includes unrealized gains and losses on trading securities and includes $(8) million and $(103) million for the three and nine months ended September 30, 2022, respectively, and $(1) million and $37 million for the three and nine months ended September 30, 2021, respectively, related to the change in fair value for securities carried under the fair value option.

(2) Includes interest expense and change in fair value related to notes issued by consolidated VIE's, management fees, administrative fees, legal fees, and other expenses related to the consolidation of certain investments.

(3) Includes interest expense, investment software expense, custodial fees, and other bank fees; institutional product issuance related expenses; and other expenses.

The sources of income related to funds withheld under reinsurance treaties reported in net investment income in the Condensed Consolidated Income Statements were as follows (in millions):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Debt securities (1)	$	178	$	184	$	508	$	581
Equity securities	(3)		1		(28)		4
Mortgage loans (2)	59		49		160		127
Policy loans	77		76		236		238
Limited partnerships	23		16		125		17
Other investment income	—		—		1		—
Total investment income on funds withheld assets	334		326		1,002		967
Other investment expenses on funds withheld assets (3)	(21)		(26)		(65)		(83)
Total net investment income on funds withheld reinsurance treaties	$	313	$	300	$	937	$	884

    

(1)    Includes $(3) million and $(11) million for the three and nine months ended September 30, 2022, respectively, and $(1) million and $(2) million for the three and nine months ended September 30, 2021, respectively, related to the change in fair value for securities carried under the fair value option.

(2)    Includes $(7) million and $(10) million for the three and nine months ended September 30, 2022, respectively, and nil both for the three and nine months ended September 30, 2021, respectively, related to the change in fair value for mortgage loans carried under the fair value option.

(3)    Includes management fees.

Net Gains (Losses) on Derivatives and Investments

The following table summarizes net gains (losses) on derivatives and investments (in millions):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Available-for-sale securities
Realized gains on sale	$	3	$	28	$	32	$	149
Realized losses on sale	(57)		(1)		(298)		(59)
Credit loss income (expense)	(6)		(17)		(5)		(10)
Credit loss income (expense) on mortgage loans	(5)		14		(2)		62
Other (1)	59		13		142		62
Net gains (losses) excluding derivatives and funds withheld assets	(6)		37		(131)		204
Net gains (losses) on derivative instruments (see Note 5)	870		(1,301)		4,362		(1,413)
Net gains (losses) on funds withheld reinsurance treaties (see Note 8)	555		(115)		2,660		15
Total net gains (losses) on derivatives and investments	$	1,419	$	(1,379)	$	6,891	$	(1,194)
(1) Includes the foreign currency gain or loss related to foreign denominated trust instruments supporting funding agreements.

Asset and Liability Information for Consolidated VIEs

Asset and liability information for the consolidated VIEs included on the Condensed Consolidated Balance Sheets are as follows (in millions):

	September 30, 2022		December 31, 2021
Assets
Debt securities, at fair value under fair value option	$	1,965	$	1,546
Debt securities, trading	102		117
Equity securities	111		129
Other invested assets	1,496		1,309
Cash and cash equivalents	53		120
Other assets	18		45
Total assets	$	3,745	$	3,266
Liabilities
Notes issued by consolidated VIEs, at fair value under fair value option	$	1,745	$	1,404
Other liabilities	407		307
Total other liabilities	2,152		1,711
Securities lending payable	5		4
Total liabilities	$	2,157	$	1,715
Equity
Noncontrolling interests	$	729	$	680

Rollforward of Mortgagees Allowance for Credit Loss

The following table provides a summary of the allowance for credit losses in the Company’s mortgage loan portfolios (in millions):

Three Months Ended September 30, 2022	Apartment		Hotel		Office		Retail		Warehouse		Residential Mortgage		Total
Balance at July 1, 2022	$	21	$	18	$	16	$	13	$	9	$	3	$	80
Charge offs, net of recoveries	—		—		—		—		—		—		—
Provision (release)	(5)		(1)		(3)		8		—		—		(1)
Balance at September 30, 2022 (1)	$	16	$	17	$	13	$	21	$	9	$	3	$	79

Three Months Ended September 30, 2021	Apartment		Hotel		Office		Retail		Warehouse		Residential Mortgage		Total
Balance at July 1, 2021	$	26	$	33	$	20	$	23	$	12	$	21	$	135
Charge offs, net of recoveries	—		—		—		—		—		—		—
Provision (release)	(5)		(18)		3		(7)		(1)		(11)		(39)
Balance at September 30, 2021 (1)	$	21	$	15	$	23	$	16	$	11	$	10	$	96

Nine Months Ended September 30, 2022	Apartment		Hotel		Office		Retail		Warehouse		Residential Mortgage		Total
Balance at January 1, 2022	$	19	$	9	$	28	$	17	$	12	$	9	$	94
Charge offs, net of recoveries	—		—		—		—		—		—		—
Provision (release)	(3)		8		(15)		4		(3)		(6)		(15)
Balance at September 30, 2022 (1)	$	16	$	17	$	13	$	21	$	9	$	3	$	79

Nine Months Ended September 30, 2021	Apartment		Hotel		Office		Retail		Warehouse		Residential Mortgage		Total
Balance at January 1, 2021	$	58	$	34	$	25	$	24	$	24	$	14	$	179
Charge offs, net of recoveries	—		—		—		—		—		—		—
Provision (release)	(37)		(19)		(2)		(8)		(13)		(4)		(83)
Balance at September 30, 2021 (1)	$	21	$	15	$	23	$	16	$	11	$	10	$	96

(1) Accrued interest receivable totaled $46 million and $48 million as of September 30, 2022 and 2021, respectively, and was excluded from the determination of credit losses.

Information About Credit Quality and Vintage Year of Commercial Mortgage Loans

The following tables provide information about the credit quality with vintage year and category of mortgage loans (in millions):

	September 30, 2022
	2022		2021		2020		2019		2018		Prior		Revolving Loans		Total		% of Total
Commercial mortgage loans
Loan to value ratios:
Less than 70%	$	518	$	1,288	$	1,305	$	1,528	$	1,458	$	3,637	$	4	$	9,738	93	%
70% - 80%	80		342		44		14		52		143		—		675		6	%
80% - 100%	—		—		—		25		4		—		—		29		—	%
Greater than 100%	—		—		—		—		—		9		—		9		—	%
Total commercial mortgage loans	598		1,630		1,349		1,567		1,514		3,789		4		10,451		100	%
Debt service coverage ratios:
Greater than 1.20x	548		1,071		957		1,439		1,345		3,456		4		8,820		84	%
1.00x - 1.20x	50		427		250		84		35		185		—		1,031		10	%
Less than 1.00x	—		132		142		44		134		148		—		600		6	%
Total commercial mortgage loans	598		1,630		1,349		1,567		1,514		3,789		4		10,451		100	%
Residential mortgage loans
Performing	473		256		227		19		14		218		—		1,207		94	%
Nonperforming (2)	2		3		11		5		6		46		—		73		6	%
Total residential mortgage loans	475		259		238		24		20		264		—		1,280		100	%
Total mortgage loans	$	1,073	$	1,889	$	1,587	$	1,591	$	1,534	$	4,053	$	4	$	11,731	100	%

	December 31, 2021
	2021		2020		2019		2018		2017		Prior		Revolving Loans		Total		% of Total
Commercial mortgage loans
Loan to value ratios:
Less than 70%	$	1,270	$	1,346	$	1,592	$	1,599	$	1,305	$	2,703	$	4	$	9,819	93	%
70% - 80%	345		35		—		52		85		153		—		670		6	%
80% - 100%	—		—		39		5		—		—		—		44		—	%
Greater than 100%	—		—		—		—		—		10		—		10		—	%
Total commercial mortgage loans	1,615		1,381		1,631		1,656		1,390		2,866		4		10,543		100	%
Debt service coverage ratios:
Greater than 1.20x	796		974		1,532		1,293		1,257		2,609		4		8,465		80	%
1.00x - 1.20x	651		329		81		90		11		68		—		1,230		12	%
Less than 1.00x	168		78		18		273		122		189		—		848		8	%
Total commercial mortgage loans	1,615		1,381		1,631		1,656		1,390		2,866		4		10,543		100	%
Residential mortgage loans
Performing	268		22		18		16		7		396		—		727		77	%
Nonperforming (2)	4		44		22		19		23		100		—		212		23	%
Total residential mortgage loans	272		66		40		35		30		496		—		939		100	%
Total mortgage loans	$	1,887	$	1,447	$	1,671	$	1,691	$	1,420	$	3,362	$	4	$	11,482	100	%

	September 30, 2022
	In Good Standing (1)		Restructured		Greater than 90 Days Delinquent		In the Process of Foreclosure		Total Carrying Value
Apartment	$	3,775	$	—	$	—	$	—	$	3,775
Hotel	1,025		—		—		—		1,025
Office	1,885		—		—		—		1,885
Retail	2,093		—		—		—		2,093
Warehouse	1,673		—		—		—		1,673
Total commercial	10,451		—		—		—		10,451
Residential (2)	1,207		—		56		17		1,280
Total	$	11,658	$	—	$	56	$	17	$	11,731

	December 31, 2021
	In Good Standing (1)		Restructured		Greater than 90 Days Delinquent		In the Process of Foreclosure		Total Carrying Value
Apartment	$	3,755	$	—	$	—	$	—	$	3,755
Hotel	1,054		—		—		—		1,054
Office	1,889		—		—		—		1,889
Retail	2,104		—		—		—		2,104
Warehouse	1,741		—		—		—		1,741
Total commercial	10,543		—		—		—		10,543
Residential (2)	727		—		206		6		939
Total	$	11,270	$	—	$	206	$	6	$	11,482

(1)     At September 30, 2022 and December 31, 2021, includes mezzanine loans of $379 million and $278 million in the Apartment category, $41 million and $75 million in the Hotel category, $237 million and $252 million in the Office category, $27 million and $27 million in the Retail category, and $56 million and $26 million in the Warehouse category, respectively.

(2)    At September 30, 2022 and December 31, 2021, includes $48 million and $202 million of loans purchased when the loans were greater than 90 days delinquent and $14 million and $5 million of loans in process of foreclosure, and are supported with insurance or other guarantees provided by various governmental programs, respectively.

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Derivative Instruments (Tables)

9 Months Ended

Sep. 30, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Aggregate Contractual Notional Amounts and Fair Values of Derivatives

A summary of the aggregate contractual or notional amounts and fair values of the Company’s freestanding and embedded derivative instruments are as follows (in millions):

	September 30, 2022
	Contractual/		Assets		Liabilities		Net
	Notional		Fair		Fair		Fair Value
	Amount (1)		Value		Value		Asset (Liability)
Freestanding derivatives
Cross-currency swaps	$	1,825	$	92	$	166	$	(74)
Equity index call options	15,500		27		—		27
Equity index futures (2)	28,891		—		—		—
Equity index put options	33,000		1,564		—		1,564
Interest rate swaps	7,728		4		238		(234)
Interest rate swaps - cleared (2)	1,500		—		—		—
Put-swaptions	22,000		—		1,781		(1,781)
Interest rate futures (2)	55,071		—		—		—
Total return swaps	739		80		—		80
Total freestanding derivatives	166,254		1,767		2,185		(418)
Embedded derivatives
Variable annuity embedded derivatives (3)	N/A		484		—		484
Fixed index annuity embedded derivatives (4)	N/A		—		967		(967)
Registered index linked annuity embedded derivatives (4)	N/A		—		10		(10)
Total embedded derivatives	N/A		484		977		(493)
Derivatives related to funds withheld under reinsurance treaties
Cross-currency swaps	158		32		—		32
Cross-currency forwards	1,460		151		40		111
Funds withheld embedded derivative (5)	N/A		3,332		—		3,332
Total derivatives related to funds withheld under reinsurance treaties	1,618		3,515		40		3,475
Total	$	167,872	$	5,766	$	3,202	$	2,564

(1) The notional amount for swaps and swaptions represents the stated principal balance used as a basis for calculating payments. The contractual amount for futures and options represents the market exposure of open positions.

(2) Variation margin is considered settlement resulting in the netting of cash received/paid for variation margin against the fair value of the trades.

(3) Included within reserves for future policy benefits and claims payable on the Condensed Consolidated Balance Sheets. The nonperformance risk adjustment is included in the balance above.

(4) Included within other contract holder funds on the Condensed Consolidated Balance Sheets. The nonperformance risk adjustment is included in the balance above.

(5) Included within funds withheld payable under reinsurance treaties on the Condensed Consolidated Balance Sheets.

	December 31, 2021
	Contractual/		Assets		Liabilities		Net
	Notional		Fair		Fair		Fair Value
	Amount (1)		Value		Value		Asset (Liability)
Freestanding derivatives
Cross-currency swaps	$	1,767	$	55	$	35	$	20
Equity index call options	21,000		606		—		606
Equity index futures (2)	18,258		—		—		—
Equity index put options	27,500		150		—		150
Interest rate swaps	7,728		430		—		430
Interest rate swaps - cleared (2)	1,500		—		—		—
Put-swaptions	19,000		133		—		133
Interest rate futures (2)	912		—		—		—
Total return swaps	—		—		—		—
Total freestanding derivatives	97,665		1,374		35		1,339
Embedded derivatives
Variable annuity embedded derivatives (3)	N/A		—		2,626		(2,626)
Fixed index annuity embedded derivatives (4)	N/A		—		1,439		(1,439)
Registered index linked annuity embedded derivatives (4)	N/A		—		6		(6)
Total embedded derivatives	N/A		—		4,071		(4,071)
Derivatives related to funds withheld under reinsurance treaties
Cross-currency swaps	158		10		1		9
Cross-currency forwards	1,119		33		5		28
Funds withheld embedded derivative (5)	N/A		—		120		(120)
Total derivatives related to funds withheld under reinsurance treaties	1,277		43		126		(83)
Total	$	98,942	$	1,417	$	4,232	$	(2,815)

(1) The notional amount for swaps and swaptions represents the stated principal balance used as a basis for calculating payments. The contractual amount for futures and options represents the market exposure of open positions.

(2) Variation margin is considered settlement resulting in the netting of cash received/paid for variation margin against the fair value of the trades.

(3) Included within reserves for future policy benefits and claims payable on the Condensed Consolidated Balance Sheets. The nonperformance risk adjustment is included in the balance above.

(4) Included within other contract holder funds on the Condensed Consolidated Balance Sheets. The nonperformance risk adjustment is included in the balance above.

(5) Included within funds withheld payable under reinsurance treaties on the Condensed Consolidated Balance Sheets.

Gains and Losses, and Change in Fair Value of Derivatives

The following table reflects the results of the Company’s derivatives, including gains (losses) and change in fair value of freestanding derivative instruments and embedded derivatives (in millions):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Derivatives excluding funds withheld under reinsurance treaties
Cross-currency swaps	$	(19)	$	(9)	$	(101)	$	(53)
Equity index call options	(275)		16		(1,506)		814
Equity index futures	1,038		(196)		5,279		(2,866)
Equity index put options	168		(71)		675		(682)
Interest rate swaps	(202)		—		(613)		(148)
Interest rate swaps - cleared	(67)		(10)		(204)		(60)
Put-swaptions	(751)		(62)		(1,905)		42
Interest rate futures	(179)		(123)		(491)		(896)
Total return swaps	39		—		47		—
Fixed index annuity embedded derivatives	—		(1)		5		(3)
Registered index linked annuity embedded derivative	58		—		121		—
Variable annuity embedded derivatives	1,060		(845)		3,055		2,439
Total net gains (losses) on derivative instruments excluding derivative instruments related to funds withheld under reinsurance treaties	870		(1,301)		4,362		(1,413)
Derivatives related to funds withheld under reinsurance treaties
Cross-currency swaps	9		6		24		11
Cross-currency forwards	67		28		136		42
Funds withheld embedded derivative	824		101		3,452		555
Total net gains (losses) on derivative instruments related to funds withheld under reinsurance treaties	900		135		3,612		608
Total net gains (losses) on derivative instruments including derivative instruments related to funds withheld under reinsurance treaties	$	1,770	$	(1,166)	$	7,974	$	(805)

Gross and Net Information About Financial Instruments Subject to Master Netting Arrangements - Assets

The following tables present the gross and net information about the Company’s financial instruments subject to master netting arrangements (in millions):

	September 30, 2022
	Gross Amounts Recognized		Gross Amounts Offset in the Condensed Consolidated Balance Sheets		Net Amounts Presented in the Condensed Consolidated Balance Sheets
							Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets
							Financial Instruments (1)		Cash Collateral		Securities Collateral (2)		Net Amount
Financial Assets:
Freestanding derivative
assets	$	1,950	$	—	$	1,950	$	496	$	1,031	$	310	$	113
Financial Liabilities:
Freestanding derivative
liabilities	$	2,225	$	—	$	2,225	$	496	$	313	$	1,365	$	51
Securities loaned	27		—		27		—		27		—		—
Repurchase agreements	—		—		—		—		—		—		—
Total financial liabilities	$	2,252	$	—	$	2,252	$	496	$	340	$	1,365	$	51

(1) Represents the amount that could be offset under master netting or similar arrangements that management elects not to offset on the Condensed Consolidated Balance Sheets.

(2) Excludes initial margin amounts for exchange-traded derivatives.

	December 31, 2021
	Gross Amounts Recognized		Gross Amounts Offset in the Condensed Consolidated Balance Sheets		Net Amounts Presented in the Condensed Consolidated Balance Sheets
							Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets
							Financial Instruments (1)		Cash Collateral		Securities Collateral (2)		Net Amount
Financial Assets:
Freestanding derivative
assets	$	1,417	$	—	$	1,417	$	41	$	817	$	555	$	4
Financial Liabilities:
Freestanding derivative
liabilities	$	41	$	—	$	41	$	41	$	—	$	—	$	—
Securities loaned	17		—		17		—		17		—		—
Repurchase agreements	1,572		—		1,572		—		—		1,572		—
Total financial liabilities	$	1,630	$	—	$	1,630	$	41	$	17	$	1,572	$	—

(1) Represents the amount that could be offset under master netting or similar arrangements that management elects not to offset on the Condensed Consolidated Balance Sheets.

(2) Excludes initial margin amounts for exchange-traded derivatives.

Gross and Net Information About Financial Instruments Subject to Master Netting Arrangements - Liabilities

The following tables present the gross and net information about the Company’s financial instruments subject to master netting arrangements (in millions):

	September 30, 2022
	Gross Amounts Recognized		Gross Amounts Offset in the Condensed Consolidated Balance Sheets		Net Amounts Presented in the Condensed Consolidated Balance Sheets
							Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets
							Financial Instruments (1)		Cash Collateral		Securities Collateral (2)		Net Amount
Financial Assets:
Freestanding derivative
assets	$	1,950	$	—	$	1,950	$	496	$	1,031	$	310	$	113
Financial Liabilities:
Freestanding derivative
liabilities	$	2,225	$	—	$	2,225	$	496	$	313	$	1,365	$	51
Securities loaned	27		—		27		—		27		—		—
Repurchase agreements	—		—		—		—		—		—		—
Total financial liabilities	$	2,252	$	—	$	2,252	$	496	$	340	$	1,365	$	51

(1) Represents the amount that could be offset under master netting or similar arrangements that management elects not to offset on the Condensed Consolidated Balance Sheets.

(2) Excludes initial margin amounts for exchange-traded derivatives.

	December 31, 2021
	Gross Amounts Recognized		Gross Amounts Offset in the Condensed Consolidated Balance Sheets		Net Amounts Presented in the Condensed Consolidated Balance Sheets
							Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets
							Financial Instruments (1)		Cash Collateral		Securities Collateral (2)		Net Amount
Financial Assets:
Freestanding derivative
assets	$	1,417	$	—	$	1,417	$	41	$	817	$	555	$	4
Financial Liabilities:
Freestanding derivative
liabilities	$	41	$	—	$	41	$	41	$	—	$	—	$	—
Securities loaned	17		—		17		—		17		—		—
Repurchase agreements	1,572		—		1,572		—		—		1,572		—
Total financial liabilities	$	1,630	$	—	$	1,630	$	41	$	17	$	1,572	$	—

(1) Represents the amount that could be offset under master netting or similar arrangements that management elects not to offset on the Condensed Consolidated Balance Sheets.

(2) Excludes initial margin amounts for exchange-traded derivatives.

XML

Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2022

Fair Value Disclosures [Abstract]

Fair Value and Carrying Value of Financial Instruments

The following table summarizes the fair value and carrying value of the Company’s financial instruments (in millions):

		September 30, 2022				December 31, 2021
		Carrying Value		Fair Value		Carrying Value		Fair Value
Assets
	Debt securities (1)	$	43,907	$	43,907	$	53,375	$	53,375
	Equity securities	234		234		279		279
	Mortgage loans (1)	11,731		11,093		11,482		11,910
	Limited partnerships	3,238		3,238		2,831		2,831
	Policy loans (1)	4,446		4,446		4,475		4,475
	Freestanding derivative instruments	1,950		1,950		1,417		1,417
	Federal Home Loan Bank of Indianapolis ("FHLBI") capital stock	146		146		125		125
	Cash and cash equivalents	5,331		5,331		2,623		2,623
	Guaranteed minimum income benefits ("GMIB") reinsurance recoverable	207		207		262		262
	Separate account assets	185,042		185,042		248,949		248,949
Liabilities
	Annuity reserves (2)	37,390		32,592		40,389		50,116
	Reserves for guaranteed investment contracts (3)	1,162		1,124		894		923
	Trust instruments supported by funding agreements (3)	4,944		4,765		5,986		6,175
	FHLB funding agreements (3)	2,252		2,385		1,950		1,938
	Funds withheld payable under reinsurance treaties (1)	23,900		23,900		29,007		29,007
	Long-term debt	2,634		2,339		2,649		2,745
	Securities lending payable	27		27		17		17
	Freestanding derivative instruments	2,225		2,225		41		41
	Notes issued by consolidated VIEs	1,745		1,745		1,404		1,404
	Repurchase agreements	—		—		1,572		1,572
	Separate account liabilities	185,042		185,042		248,949		248,949
(1) Includes items carried at fair value under the fair value option and trading securities. (2) Annuity reserves represent only the components of other contract holder funds and reserves for future policy benefits and claims payable that are considered to be financial instruments. (3) Included as a component of other contract holder funds on the Condensed Consolidated Balance Sheets.

Fair Value Option

The fair value and aggregate contractual principal for mortgage loans where the fair value option was elected after December 31, 2021, were as follows (in millions):

	September 30,
	2022
Fair value	$	508
Aggregate contractual principal	520

Assets and Liabilities Carried at Fair Value by Hierarchy Levels

The following tables summarize the Company’s assets and liabilities that are carried at fair value by hierarchy levels (in millions):

		September 30, 2022
		Total		Level 1		Level 2		Level 3
Assets
	Debt securities
	U.S. government securities	$	4,056	$	3,512	$	544	$	—
	Other government securities	1,449		—		1,449		—
	Public utilities	5,109		—		5,109		—
	Corporate securities	25,395		—		25,318		77
	Residential mortgage-backed	455		—		455		—
	Commercial mortgage-backed	1,645		—		1,645		—
	Other asset-backed securities	5,798		—		5,798		—
	Equity securities	234		16		111		107
	Mortgage loans	508		—		—		508
	Limited partnerships (1)	1		—		—		1
	Policy loans	3,487		—		—		3,487
	Freestanding derivative instruments	1,950		—		1,950		—
	Cash and cash equivalents	5,331		5,331		—		—
	GMIB reinsurance recoverable	207		—		—		207
	Separate account assets	185,042		—		185,042		—
	Total	$	240,667	$	8,859	$	227,421	$	4,387
Liabilities
	Embedded derivative liabilities (2)	$	493	$	—	$	977	$	(484)
	Funds withheld payable under reinsurance treaties (3)	314		—		—		314
	Freestanding derivative instruments	2,225		—		2,225		—
	Notes issued by consolidated VIEs	1,745		—		1,745		—
	Total	$	4,777	$	—	$	4,947	$	(170)
	(1) Excludes $3,237 million of limited partnership investments measured at NAV.
	(2) Includes the embedded derivative of $(484) million related to GMWB reserves included in reserves for future policy benefits and claims payable, liability of $10 million related to RILA and $967 million liability of fixed index annuities, both included in other contract holder funds on the Condensed Consolidated Balance Sheets.
	(3) Includes the Athene embedded derivative asset of $3,332 million and funds withheld payable under reinsurance treaties at fair value under the fair value option.

		December 31, 2021
		Total		Level 1		Level 2		Level 3
Assets
	Debt securities
	U.S. government securities	$	4,321	$	4,321	$	—	$	—
	Other government securities	1,619		—		1,619		—
	Public utilities	6,715		—		6,715		—
	Corporate securities	31,146		—		31,137		9
	Residential mortgage-backed	569		—		569		—
	Commercial mortgage-backed	2,038		—		2,038		—
	Other asset-backed securities	6,967		—		6,967		—
	Equity securities	279		111		56		112
	Limited partnerships (1)	18		—		17		1
	Policy loans	3,467		—		—		3,467
	Freestanding derivative instruments	1,417		—		1,417		—
	Cash and cash equivalents	2,623		2,623		—		—
	GMIB reinsurance recoverable	262		—		—		262
	Separate account assets	248,949		—		248,949		—
	Total	$	310,390	$	7,055	$	299,484	$	3,851
Liabilities
	Embedded derivative liabilities (2)	$	4,071	$	—	$	1,445	$	2,626
	Funds withheld payable under reinsurance treaties (3)	3,759		—		—		3,759
	Freestanding derivative instruments	41		—		41		—
	Notes issued by consolidated VIEs	1,404		—		1,404		—
	Total	$	9,275	$	—	$	2,890	$	6,385
	(1) Excludes $2,813 million of limited partnership investments measured at NAV.
	(2) Includes the embedded derivative liabilities of $2,626 million related to GMWB reserves included in reserves for future policy benefits and claims payable, $6 million of RILA and $1,439 million of fixed index annuities, both included in other contract holder funds on the Condensed Consolidated Balance Sheets.
	(3) Includes the Athene embedded derivative liability of $120 million and funds withheld payable under reinsurance treaties at fair value under the fair value option.

Balances of Level 3 Assets and Liabilities Measured at Fair Value with Corresponding Pricing Sources

The table below presents the balances of Level 3 assets and liabilities measured at fair value with their corresponding pricing sources (in millions):

	September 30, 2022
Assets	Total		Internal		External
Debt securities:
Corporate	$	77	$	—	$	77
Equity securities	107		—		107
Mortgage loans	508		—		508
Limited partnerships	1		1		—
Policy loans	3,487		3,487		—
GMIB reinsurance recoverable	207		207		—
Total	$	4,387	$	3,695	$	692
Liabilities
Embedded derivative liabilities (1)	$	(484)	$	(484)	$	—
Funds withheld payable under reinsurance treaties (2)	314		314		—
Total	$	(170)	$	(170)	$	—
(1) Includes the embedded derivative related to GMWB reserves.
(2) Includes the Athene embedded derivative asset of $3,332 million and funds withheld payable under reinsurance treaties at fair value under the fair value option.
	December 31, 2021
Assets	Total		Internal		External
Debt securities:
Corporate	$	9	$	—	$	9
Equity securities	112		1		111
Limited partnerships	1		1		—
Policy loans	3,467		3,467		—
GMIB reinsurance recoverable	262		262		—
Total	$	3,851	$	3,731	$	120
Liabilities
Embedded derivative liabilities (1)	$	2,626	$	2,626	$	—
Funds withheld payable under reinsurance treaties (2)	3,759		3,759		—
Total	$	6,385	$	6,385	$	—
(1) Includes the embedded derivative related to GMWB reserves.
(2) Includes the Athene embedded derivative liability of $120 million and funds withheld payable under reinsurance treaties at fair value under the fair value option.

Quantitative Information on Significant Internally-Priced Level 3 Assets and Liabilities

The table below presents quantitative information on significant internally-priced Level 3 assets and liabilities (in millions):

	As of September 30, 2022
	Fair Value		Valuation Technique(s)	Significant Unobservable Input(s)	Assumption or Input Range	Impact of Increase in Input on Fair Value
Assets
GMIB reinsurance recoverable	$	207	Discounted cash flow	Mortality(1)	0.01% - 23.42%	Decrease
				Lapse(2)	3.30% - 9.00%	Decrease
				Utilization(3)	0.00% - 20.00%	Increase
				Withdrawal(4)	3.75% - 4.50%	Increase
				Nonperformance risk(5)	0.00% - 2.57%	Decrease
				Long-term Equity Volatility(6)	18.50% - 23.98%	Increase
Liabilities
Embedded derivative liabilities	$	(484)	Discounted cash flow	Mortality(1)	0.04% - 21.45%	Decrease
				Lapse(2)	0.20% - 30.90%	Decrease
				Utilization(3)	5.00% - 100.00%	Increase
				Withdrawal(4)	58.00% - 97.00%	Increase
				Nonperformance risk(5)	0.00% - 2.57%	Decrease
				Long-term Equity Volatility(6)	18.50% - 23.98%	Increase

(1)    Mortality rates vary by attained age, tax qualification status, GMWB benefit election, and duration. The range displayed reflects ages from the minimum issue age for the benefit through age 95, which corresponds to the typical maturity age. A mortality improvement assumption is also applied.

(2)     Base lapse rates vary by contract-level factors, such as product type, surrender charge schedule and optional benefits election. Lapse rates are further adjusted based on the degree to which a guaranteed benefit is in-the-money, with lower lapse applying when benefits are more in-the-money. Lapse rates are also adjusted to reflect lower lapse expectations when GMWB benefits are utilized.

(3)     The utilization rate represents the expected percentage of contracts that will utilize the benefit through annuitization (GMIB) or commencement of withdrawals (GMWB). Utilization may vary by benefit type, attained age, duration, tax qualification status, benefit provision, and degree to which the guaranteed benefit is in-the-money.

(4)     The withdrawal rate represents the utilization rate of the contract’s free partial withdrawal provision (GMIB) or the percentage of annual withdrawal assumed relative to the maximum allowable withdrawal amount (GMWB). Withdrawal rates on contracts with a GMIB vary based on the product type and duration. Withdrawal rates on contracts with a GMWB vary based on attained age, tax qualification status, GMWB type and GMWB benefit provisions.

(5)    Nonperformance risk spread varies by projection year.

(6)    Long-term equity volatility represents the equity volatility beyond the period for which observable equity volatilities are available.

	As of December 31, 2021
	Fair Value		Valuation Technique(s)	Significant Unobservable Input(s)	Assumption or Input Range	Impact of Increase in Input on Fair Value
Assets
GMIB reinsurance recoverable	$	262	Discounted cash flow	Mortality(1)	0.01% - 23.42%	Decrease
				Lapse(2)	3.30% - 9.00%	Decrease
				Utilization(3)	0.00% - 20.00%	Increase
				Withdrawal(4)	3.75% - 4.50%	Increase
				Nonperformance risk(5)	0.11% - 1.50%	Decrease
				Long-term Equity Volatility(6)	18.50% - 22.06%	Increase
Liabilities
Embedded derivative liabilities	$	2,626	Discounted cash flow	Mortality(1)	0.04% - 21.45%	Decrease
				Lapse(2)	0.20% - 30.90%	Decrease
				Utilization(3)	5.00% - 100.00%	Increase
				Withdrawal(4)	58.00% - 97.00%	Increase
				Nonperformance risk(5)	0.11% - 1.50%	Decrease
				Long-term Equity Volatility(6)	18.50% - 22.06%	Increase

(1)    Mortality rates vary by attained age, tax qualification status, GMWB benefit election, and duration. The range displayed reflects ages from the minimum issue age for the benefit through age 95, which corresponds to the typical maturity age. A mortality improvement assumption is also applied.

(2)     Base lapse rates vary by contract-level factors, such as product type, surrender charge schedule and optional benefits election. Lapse rates are further adjusted based on the degree to which a guaranteed benefit is in-the-money, with lower lapse applying when benefits are more in-the-money. Lapse rates are also adjusted to reflect lower lapse expectations when GMWB benefits are utilized.

(3)     The utilization rate represents the expected percentage of contracts that will utilize the benefit through annuitization (GMIB) or commencement of withdrawals (GMWB). Utilization may vary by benefit type, attained age, duration, tax qualification status, benefit provision, and degree to which the guaranteed benefit is in-the-money.

(4)     The withdrawal rate represents the utilization rate of the contract’s free partial withdrawal provision (GMIB) or the percentage of annual withdrawal assumed relative to the maximum allowable withdrawal amount (GMWB). Withdrawal rates on contracts with a GMIB vary based on the product type and duration. Withdrawal rates on contracts with a GMWB vary based on attained age, tax qualification status, GMWB type and GMWB benefit provisions.

(5)    Nonperformance risk spread varies by projection year.

(6)    Long-term equity volatility represents the equity volatility beyond the period for which observable equity volatilities are available.

Rollforwards of Financial Instruments for Which Significant Unobservable Inputs (Level 3) are Used - Assets

The tables below provide roll forwards for the three and nine months ended September 30, 2022 and 2021 of the financial instruments for which significant unobservable inputs (Level 3) are used in the fair value measurement. Gains and losses in the tables below include changes in fair value due partly to observable and unobservable factors. The Company utilizes derivative instruments to manage the risk associated with certain assets and liabilities. However, the derivative instruments hedging the related risks may not be classified within the same fair value hierarchy level as the associated assets and liabilities. Therefore, the impact of the derivative instruments reported in Level 3 may vary significantly from the total income effect of the hedged instruments.

				Total Realized/Unrealized Gains (Losses) Included in
								Purchases,
		Fair Value						Sales,		Transfers		Fair Value
		as of				Other		Issuances		in and/or		as of
		July 1,		Net		Comprehensive		and		(out of)		September 30,
Three Months Ended September 30, 2022		2022		Income		Income		Settlements		Level 3		2022
Assets
	Debt securities
	Corporate securities	$	47	$	(5)	$	(1)	$	10	$	26	$	77
	Equity securities	124		(6)		—		(11)		—		107
	Mortgage loans	357		(7)		—		158		—		508
	Limited partnerships	1		—		—		—		—		1
	GMIB reinsurance recoverable	232		(25)		—		—		—		207
	Policy loans	3,485		(27)		—		29		—		3,487
Liabilities
	Embedded derivative liabilities	$	(601)	$	1,085	$	—	$	—	$	—	$	484
	Funds withheld payable under reinsurance treaties	(1,141)		857		—		(30)		—		(314)

				Total Realized/Unrealized Gains (Losses) Included in
								Purchases,
		Fair Value						Sales,		Transfers		Fair Value
		as of				Other		Issuances		in and/or		as of
		July 1,		Net		Comprehensive		and		(out of)		September 30,
Three Months Ended September 30, 2021		2021		Income		Income		Settlements		Level 3		2021
Assets
	Debt securities
	Corporate securities	$	31	$	—	$	—	$	3	$	(26)	$	8
	Equity securities	103		6		—		1		—		110
	Limited partnerships	1		—		—		—		—		1
	GMIB reinsurance recoverable	267		11		—		—		—		278
	Policy loans	3,538		(136)		—		86		—		3,488
Liabilities
	Embedded derivative liabilities	$	(2,236)	$	(856)	$	—	$	—	$	—	$	(3,092)
	Funds withheld payable under reinsurance treaties	(4,082)		236		—		(86)		—		(3,932)

				Total Realized/Unrealized Gains (Losses) Included in
								Purchases,
		Fair Value						Sales,		Transfers		Fair Value
		as of				Other		Issuances		in and/or		as of
		January 1,		Net		Comprehensive		and		(out of)		September 30,
Nine Months Ended September 30, 2022		2022		Income		Income		Settlements		Level 3		2022
Assets
	Debt securities
	Corporate securities	$	9	$	—	$	(1)	$	13	$	56	$	77
	Equity securities	112		10		—		(15)		—		107
	Mortgage loans	—		(10)		—		518		—		508
	Limited partnerships	1		—		—		—		—		1
	GMIB reinsurance recoverable	262		(55)		—		—		—		207
	Policy loans	3,467		109		—		(89)		—		3,487
Liabilities
	Embedded derivative liabilities	$	(2,626)	$	3,110	$	—	$	—	$	—	$	484
	Funds withheld payable under reinsurance treaties	(3,759)		3,349		—		96		—		(314)

				Total Realized/Unrealized Gains (Losses) Included in
								Purchases,
		Fair Value						Sales,		Transfers		Fair Value
		as of				Other		Issuances		in and/or		as of
		January 1,		Net		Comprehensive		and		(out of)		September 30,
Nine Months Ended September 30, 2021		2021		Income		Income		Settlements		Level 3		2021
Assets
	Debt securities
	Corporate securities	$	29	$	2	$	—	$	8	$	(31)	$	8
	Equity securities	104		13		—		(7)		—		110
	Limited partnerships	1		—		—		—		—		1
	GMIB reinsurance recoverable	340		(62)		—		—		—		278
	Policy loans	3,455		(11)		—		44		—		3,488
Liabilities
	Embedded derivative liabilities	$	(5,592)	$	2,500	$	—	$	—	$	—	$	(3,092)
	Funds withheld payable under reinsurance treaties	(4,453)		565		2		(46)		—		(3,932)

Rollforwards of Financial Instruments for Which Significant Unobservable Inputs (Level 3) are Used - Liabilities

The tables below provide roll forwards for the three and nine months ended September 30, 2022 and 2021 of the financial instruments for which significant unobservable inputs (Level 3) are used in the fair value measurement. Gains and losses in the tables below include changes in fair value due partly to observable and unobservable factors. The Company utilizes derivative instruments to manage the risk associated with certain assets and liabilities. However, the derivative instruments hedging the related risks may not be classified within the same fair value hierarchy level as the associated assets and liabilities. Therefore, the impact of the derivative instruments reported in Level 3 may vary significantly from the total income effect of the hedged instruments.

				Total Realized/Unrealized Gains (Losses) Included in
								Purchases,
		Fair Value						Sales,		Transfers		Fair Value
		as of				Other		Issuances		in and/or		as of
		July 1,		Net		Comprehensive		and		(out of)		September 30,
Three Months Ended September 30, 2022		2022		Income		Income		Settlements		Level 3		2022
Assets
	Debt securities
	Corporate securities	$	47	$	(5)	$	(1)	$	10	$	26	$	77
	Equity securities	124		(6)		—		(11)		—		107
	Mortgage loans	357		(7)		—		158		—		508
	Limited partnerships	1		—		—		—		—		1
	GMIB reinsurance recoverable	232		(25)		—		—		—		207
	Policy loans	3,485		(27)		—		29		—		3,487
Liabilities
	Embedded derivative liabilities	$	(601)	$	1,085	$	—	$	—	$	—	$	484
	Funds withheld payable under reinsurance treaties	(1,141)		857		—		(30)		—		(314)

				Total Realized/Unrealized Gains (Losses) Included in
								Purchases,
		Fair Value						Sales,		Transfers		Fair Value
		as of				Other		Issuances		in and/or		as of
		July 1,		Net		Comprehensive		and		(out of)		September 30,
Three Months Ended September 30, 2021		2021		Income		Income		Settlements		Level 3		2021
Assets
	Debt securities
	Corporate securities	$	31	$	—	$	—	$	3	$	(26)	$	8
	Equity securities	103		6		—		1		—		110
	Limited partnerships	1		—		—		—		—		1
	GMIB reinsurance recoverable	267		11		—		—		—		278
	Policy loans	3,538		(136)		—		86		—		3,488
Liabilities
	Embedded derivative liabilities	$	(2,236)	$	(856)	$	—	$	—	$	—	$	(3,092)
	Funds withheld payable under reinsurance treaties	(4,082)		236		—		(86)		—		(3,932)

				Total Realized/Unrealized Gains (Losses) Included in
								Purchases,
		Fair Value						Sales,		Transfers		Fair Value
		as of				Other		Issuances		in and/or		as of
		January 1,		Net		Comprehensive		and		(out of)		September 30,
Nine Months Ended September 30, 2022		2022		Income		Income		Settlements		Level 3		2022
Assets
	Debt securities
	Corporate securities	$	9	$	—	$	(1)	$	13	$	56	$	77
	Equity securities	112		10		—		(15)		—		107
	Mortgage loans	—		(10)		—		518		—		508
	Limited partnerships	1		—		—		—		—		1
	GMIB reinsurance recoverable	262		(55)		—		—		—		207
	Policy loans	3,467		109		—		(89)		—		3,487
Liabilities
	Embedded derivative liabilities	$	(2,626)	$	3,110	$	—	$	—	$	—	$	484
	Funds withheld payable under reinsurance treaties	(3,759)		3,349		—		96		—		(314)

				Total Realized/Unrealized Gains (Losses) Included in
								Purchases,
		Fair Value						Sales,		Transfers		Fair Value
		as of				Other		Issuances		in and/or		as of
		January 1,		Net		Comprehensive		and		(out of)		September 30,
Nine Months Ended September 30, 2021		2021		Income		Income		Settlements		Level 3		2021
Assets
	Debt securities
	Corporate securities	$	29	$	2	$	—	$	8	$	(31)	$	8
	Equity securities	104		13		—		(7)		—		110
	Limited partnerships	1		—		—		—		—		1
	GMIB reinsurance recoverable	340		(62)		—		—		—		278
	Policy loans	3,455		(11)		—		44		—		3,488
Liabilities
	Embedded derivative liabilities	$	(5,592)	$	2,500	$	—	$	—	$	—	$	(3,092)
	Funds withheld payable under reinsurance treaties	(4,453)		565		2		(46)		—		(3,932)

Components of Amounts Included in Purchases, Sales, Issuances and Settlements

The components of the amounts included in purchases, sales, issuances and settlements for the three and nine months ended September 30, 2022 and 2021 shown above are as follows (in millions):

Three Months Ended September 30, 2022		Purchases		Sales		Issuances		Settlements		Total
Assets
	Debt securities
	Corporate securities	$	12	$	(2)	$	—	$	—	$	10
	Equity securities	1		(12)		—		—		(11)
	Mortgage loans	159		(1)		—		—		158
	Policy loans	—		—		74		(45)		29
	Total	$	172	$	(15)	$	74	$	(45)	$	186
Liabilities
	Funds withheld payable under reinsurance treaties	$	—	$	—	$	(79)	$	49	$	(30)
Three Months Ended September 30, 2021		Purchases		Sales		Issuances		Settlements		Total
Assets
	Debt securities
	Corporate securities	$	3	$	—	$	—	$	—	$	3
	Equity securities	1		—		—		—		1
	Policy loans	—		—		156		(70)		86
	Total	$	4	$	—	$	156	$	(70)	$	90
Liabilities
	Funds withheld payable under reinsurance treaties	$	—	$	—	$	(187)	$	101	$	(86)

Nine Months Ended September 30, 2022		Purchases		Sales		Issuances		Settlements		Total
Assets
	Debt securities
	Corporate securities	$	15	$	(2)	$	—	$	—	$	13
	Equity securities	1		(16)		—		—		(15)
	Mortgage loans	519		(1)		—		—		518
	Policy loans	—		—		105		(194)		(89)
	Total	$	535	$	(19)	$	105	$	(194)	$	427
Liabilities
	Funds withheld payable under reinsurance treaties	$	—	$	—	$	(111)	$	207	$	96
Nine Months Ended September 30, 2021		Purchases		Sales		Issuances		Settlements		Total
Assets
	Debt securities
	Corporate securities	$	9	$	(1)	$	—	$	—	$	8
	Equity securities	1		(8)		—		—		(7)
	Policy loans	—		—		192		(148)		44
	Total	$	10	$	(9)	$	192	$	(148)	$	45
Liabilities
	Funds withheld payable under reinsurance treaties	$	—	$	—	$	(398)	$	352	$	(46)

Portion of Gains (Losses) Included in Net Income or Other Comprehensive Income

The portion of gains (losses) included in net income (loss) or other comprehensive income (loss) ("OCI") attributable to the change in unrealized gains and losses on Level 3 financial instruments still held was as follows (in millions):

	Three Months Ended September 30,
	2022				2021
	Included in Net Income		Included in OCI		Included in Net Income		Included in OCI
Assets
Debt securities
Corporate securities	$	(5)	$	(1)	$	—	$	—
Equity securities	(6)		—		6		—
Mortgage loans	(7)		—		—		—
GMIB reinsurance recoverable	(25)		—		11		—
Policy loans	(27)		—		(136)		—
Liabilities
Embedded derivative liabilities	$	1,085	$	—	$	(856)	$	—
Funds withheld payable under reinsurance treaties	857		—		110		—

	Nine Months Ended September 30,
	2022				2021
	Included in Net Income		Included in OCI		Included in Net Income		Included in OCI
Assets
Debt securities
Corporate securities	$	—	$	(1)	$	2	$	—
Equity securities	10		—		13		—
Mortgage loans	(10)		—		—		—
GMIB reinsurance recoverable	(55)		—		(62)		—
Policy loans	109		—		(11)		—
Liabilities
Embedded derivative liabilities	$	3,110	$	—	$	2,500	$	—
Funds withheld payable under reinsurance treaties	3,349		—		565		—

Carrying Amount and Fair Value by Hierarchy of Certain Financial Instruments Not Reported at Fair Value

The table below presents the carrying amount and fair value by fair value hierarchy level of certain financial instruments that are not reported at fair value (in millions).

	September 30, 2022
			Fair Value
	Carrying Value		Total		Level 1		Level 2		Level 3
Assets
Mortgage loans	$	11,223	$	10,585	$	—	$	—	$	10,585
Policy loans	959		959		—		—		959
FHLBI capital stock	146		146		146		—		—
Liabilities
Annuity reserves (1)	$	36,897	$	32,099	$	—	$	—	$	32,099
Reserves for guaranteed investment contracts (2)	1,162		1,124		—		—		1,124
Trust instruments supported by funding agreements (2)	4,944		4,765		—		—		4,765
FHLB funding agreements (2)	2,252		2,385		—		—		2,385
Funds withheld payable under reinsurance treaties	23,586		23,586		—		—		23,586
Debt	2,634		2,339		—		2,339		—
Securities lending payable	27		27		—		27		—
Repurchase agreements	—		—		—		—		—
Separate account liabilities (4)	185,042		185,042		—		185,042		—
	December 31, 2021
			Fair Value
	Carrying Value		Total		Level 1		Level 2		Level 3
Assets
Mortgage loans	$	11,482	$	11,910	$	—	$	—	$	11,910
Policy loans	1,008		1,008		—		—		1,008
FHLBI capital stock	125		125		125		—		—
Liabilities
Annuity reserves (1)	$	36,318	$	46,045	$	—	$	—	$	46,045
Reserves for guaranteed investment contracts (2)	894		923		—		—		923
Trust instruments supported by funding agreements (2)	5,986		6,175		—		—		6,175
FHLB funding agreements (2)	1,950		1,938		—		—		1,938
Funds withheld payable under reinsurance treaties (3)	24,533		24,533		537		19,127		4,869
Debt	2,649		2,745		—		2,745		—
Securities lending payable	17		17		—		17		—
Repurchase agreements	1,572		1,572		—		1,572		—
Separate account liabilities (4)	248,949		248,949		—		248,949		—
(1) Annuity reserves represent only the components of other contract holder funds that are considered to be financial instruments.
(2) Included as a component of other contract holder funds on the Condensed Consolidated Balance Sheets.
(3) Excludes $715 million of limited partnership investments measured at NAV at December 31, 2021, respectively.
(4) The values of separate account liabilities are set equal to the values of separate account assets.

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Deferred Acquisition Costs (Tables)

9 Months Ended

Sep. 30, 2022

Insurance [Abstract]

Deferred Acquisition Costs

The balances of, and changes, in deferred acquisition costs were as follows (in millions):

	Nine Months Ended September 30,
	2022		2021
Balance, beginning of period	$	14,249	$	13,897
Deferrals of acquisition costs	497		592
Amortization	(2,276)		(551)
Unrealized investment (gains) losses	327		79
Balance, end of period	$	12,797	$	14,017

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Reinsurance (Tables)

9 Months Ended

Sep. 30, 2022

Insurance [Abstract]

Assets and Liabilities Held in Support of Reserves Associated with Funds Withheld Reinsurance Agreements

The following assets and liabilities were held in support of reserves associated with the Company’s funds withheld reinsurance agreements and were reported in the respective financial statement line items in the Condensed Consolidated Balance Sheets (in millions):

	September 30,		December 31,
	2022		2021
Assets
Debt securities, available-for-sale	$	13,919	$	19,094
Debt securities, at fair value under the fair value option	158		164
Equity securities	84		116
Mortgage loans	4,346		4,739
Mortgage loans, at fair value under the fair value option	508		—
Policy loans	3,500		3,483
Freestanding derivative instruments, net	143		37
Other invested assets	869		715
Cash and cash equivalents	509		438
Accrued investment income	169		162
Other assets and liabilities, net	(146)		(56)
Total assets (1)	$	24,059	$	28,892
Liabilities
Funds held under reinsurance treaties (2)	$	23,900	$	29,007
Total liabilities	$	23,900	$	29,007

(1)     Certain assets are reported at amortized cost while the fair value of those assets is reported in the embedded derivative in the funds withheld liability.

(2) Includes funds withheld embedded derivative asset (liability) of $3,332 million and $(120) million at September 30, 2022 and December 31, 2021, respectively.

Sources of Income Related to Funds Withheld Under Reinsurance Treaties

The sources of net investment income were as follows (in millions):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Debt securities (1)	$	306	$	272	$	792	$	872
Equity securities	(25)		—		(18)		6
Mortgage loans	70		79		211		242
Policy loans	18		20		52		55
Limited partnerships	(7)		193		151		586
Other investment income	14		2		25		10
Total investment income excluding funds withheld assets	376		566		1,213		1,771
Net investment income on funds withheld assets (see Note 8)	313		300		937		884
Investment expenses:
Derivative trading commission	(3)		(1)		(5)		(2)
Depreciation on real estate	(2)		(4)		(8)		(8)
Expenses related to consolidated entities (2)	(26)		(8)		(62)		(24)
Other investment income (expense) (3)	(18)		(16)		(53)		(53)
Total investment expenses	(49)		(29)		(128)		(87)
Net investment income	$	640	$	837	$	2,022	$	2,568

(1) Includes unrealized gains and losses on trading securities and includes $(8) million and $(103) million for the three and nine months ended September 30, 2022, respectively, and $(1) million and $37 million for the three and nine months ended September 30, 2021, respectively, related to the change in fair value for securities carried under the fair value option.

(2) Includes interest expense and change in fair value related to notes issued by consolidated VIE's, management fees, administrative fees, legal fees, and other expenses related to the consolidation of certain investments.

(3) Includes interest expense, investment software expense, custodial fees, and other bank fees; institutional product issuance related expenses; and other expenses.

The sources of income related to funds withheld under reinsurance treaties reported in net investment income in the Condensed Consolidated Income Statements were as follows (in millions):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Debt securities (1)	$	178	$	184	$	508	$	581
Equity securities	(3)		1		(28)		4
Mortgage loans (2)	59		49		160		127
Policy loans	77		76		236		238
Limited partnerships	23		16		125		17
Other investment income	—		—		1		—
Total investment income on funds withheld assets	334		326		1,002		967
Other investment expenses on funds withheld assets (3)	(21)		(26)		(65)		(83)
Total net investment income on funds withheld reinsurance treaties	$	313	$	300	$	937	$	884

    

(1)    Includes $(3) million and $(11) million for the three and nine months ended September 30, 2022, respectively, and $(1) million and $(2) million for the three and nine months ended September 30, 2021, respectively, related to the change in fair value for securities carried under the fair value option.

(2)    Includes $(7) million and $(10) million for the three and nine months ended September 30, 2022, respectively, and nil both for the three and nine months ended September 30, 2021, respectively, related to the change in fair value for mortgage loans carried under the fair value option.

(3)    Includes management fees.

Gains And Losses On Funds Withheld Reinsurance Treaties

The gains and losses on funds withheld reinsurance treaties as a component of net gains (losses) on derivatives and investments in the Condensed Consolidated Income Statements were as follows (in millions):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Available-for-sale securities
Realized gains on sale	$	1	$	81	$	41	$	339
Realized losses on sale	(8)		(1)		(39)		(14)
Credit loss expense	7		(1)		(33)		(2)
Credit loss expense on mortgage loans	6		25		17		21
Other	(43)		(20)		(102)		(32)
Net gains (losses) on non-derivative investments	(37)		84		(116)		312
Net gains (losses) on derivative instruments	76		34		160		53
Net gains (losses) on funds withheld payable under reinsurance treaties (1)	516		(233)		2,616		(350)
Total net gains (losses) on derivatives and investments	$	555	$	(115)	$	2,660	$	15
(1) Includes the Athene embedded derivative gain (loss) of $824 million and $3,452 million for the three and nine months ended September 30, 2022, respectively, and $101 million and $555 million for the three and nine months ended September 30, 2021, respectively.

Components of Reinsurance Recoverable, and Premiums and Benefits

Components of the Company’s reinsurance recoverable were as follows (in millions):

	September 30,		December 31,
	2022		2021
Reserves:
Life	$	5,753	$	5,829
Accident and health	534		547
Guaranteed minimum income benefits	207		262
Other annuity benefits (1)	23,506		25,625
Claims liability and other	796		863
Total	$	30,796	$	33,126

(1)     Other annuity benefits primarily attributable to fixed and fixed index annuities reinsured with Athene.

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Reserves for Future Policy Benefits and Claims Payable and Other Contract Holder Funds (Tables)

9 Months Ended

Sep. 30, 2022

Insurance [Abstract]

Reserves for Future Policy Benefits and Claims Payable Balances

The following table sets forth the Company’s reserves for future policy benefits and claims payable balances (in millions):

	September 30,		December 31,
	2022		2021
Traditional life	$	4,030	$	4,262
Guaranteed benefits (1)	3,529		5,477
Claims payable	977		1,050
Accident and health	1,171		1,204
Group payout annuities	4,660		4,895
Life contingent payouts	1,160		1,152
Other	603		627
Total	$	16,130	$	18,667

(1)     Primarily includes the embedded derivative liabilities related to the GMWB reserve.

Liabilities for Other Contract Holder Funds Balances

The following table sets forth the Company’s liabilities for other contract holder funds balances (in millions):

	September 30,		December 31,
	2022		2021
Interest-sensitive life	$	11,336	$	11,553
Variable annuity fixed option	10,751		9,751
RILA (1)	1,235		110
Fixed annuity	14,035		14,960
Fixed index annuity (2)	12,279		13,333
GICs, funding agreements and FHLB advances	8,358		8,830
Other	180		189
Total	$	58,174	$	58,726

(1) Includes the embedded derivative liabilities related to RILA of $10 million and $6 million at September 30, 2022 and December 31, 2021, respectively.

(2) Includes the embedded derivative liabilities related to fixed index annuity of $967 million and $1,439 million at September 30, 2022 and December 31, 2021, respectively.

Distribution of Fixed Interest Rate Annuities' Account Values

The following tables show the distribution of those annuity account values within the presented ranges of minimum guaranteed interest rates (in millions):

	September 30, 2022
Minimum Guaranteed Interest Rate	Account Value
	Fixed		Fixed Index		RILA		Variable		Total
1.0%	$	256	$	345	$	12	$	6,879	$	7,492
>1.0% - 2.0%	51		—		—		208		259
>2.0% - 3.0%	1,080		166		—		3,347		4,593
>3.0% - 4.0%	573		—		—		—		573
>4.0% - 5.0%	273		—		—		—		273
>5.0% - 5.5%	72		—		—		—		72
Subtotal	2,305		511		12		10,434		13,262
Ceded reinsurance	11,141		11,768		—		—		22,909
Total	$	13,446	$	12,279	$	12	$	10,434	$	36,171
	December 31, 2021
Minimum Guaranteed Interest Rate	Account Value
	Fixed		Fixed Index		RILA		Variable		Total
1.0%	$	156	$	279	$	1	$	5,988	$	6,424
>1.0% - 2.0%	57		1		—		214		272
>2.0% - 3.0%	1,113		183		—		3,254		4,550
>3.0% - 4.0%	594		—		—		—		594
>4.0% - 5.0%	276		—		—		—		276
>5.0% - 5.5%	72		—		—		—		72
Subtotal	2,268		463		1		9,456		12,188
Ceded reinsurance	12,086		12,870		—		—		24,956
Total	$	14,354	$	13,333	$	1	$	9,456	$	37,144

Distribution of Interest Sensitive Life Business Account Values

The following table shows the distribution of the interest sensitive life business account values within the presented ranges of minimum guaranteed interest rates, excluding the business that is subject to the previously mentioned retro treaties (in millions):

	September 30,		December 31,
Minimum Guaranteed Interest Rate	2022		2021
	Account Value - Interest Sensitive Life
>2.0% - 3.0%	$	244	$	252
>3.0% - 4.0%	2,657		2,736
>4.0% - 5.0%	2,306		2,381
>5.0% - 6.0%	1,907		1,962
Subtotal	7,114		7,331
Retro treaties	4,222		4,222
Total	$	11,336	$	11,553

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Certain Nontraditional Long-Duration Contracts and Variable Annuity Guarantees (Tables)

9 Months Ended

Sep. 30, 2022

Insurance [Abstract]

Net Amount At Risk

At September 30, 2022 and December 31, 2021, the Company provided variable annuity contracts with guarantees, for which the net amount at risk is defined as the amount of guaranteed benefit in excess of current account value, as follows (dollars in millions):

		Minimum Return	Account  Value		Net Amount at Risk		Weighted Average Attained Age	Average Period until Expected Annuitization
September 30, 2022
Return of net deposits plus a minimum return
	GMDB	0-6%	$	143,677	$	11,321	69.2 years
	GMWB - Premium only	0%	2,047		86
	GMWB	0-5%*	162		17
Highest specified anniversary account value    minus withdrawals post-anniversary
	GMDB		10,646		3,097		70.4 years
	GMWB - Highest anniversary only		2,819		723
	GMWB		831		169
Combination net deposits plus minimum return,    highest specified anniversary account value    minus withdrawals post-anniversary
	GMDB	0-6%	7,276		2,748		72.2 years
	GMIB	0-6%	1,156		827			0.5 years
	GMWB	0-8%*	134,190		48,276
							Weighted Average Attained Age	Average Period until Expected Annuitization
		Minimum Return	Account  Value		Net Amount at Risk
December 31, 2021
Return of net deposits plus a minimum return
	GMDB	0-6%	$	194,060	$	2,124	68.7 years
	GMWB - Premium only	0%	2,937		7
	GMWB	0-5%*	245		8
Highest specified anniversary account value    minus withdrawals post-anniversary
	GMDB		14,806		93		69.8 years
	GMWB - Highest anniversary only		3,919		33
	GMWB		643		44
Combination net deposits plus minimum return,    highest specified anniversary account value    minus withdrawals post-anniversary
	GMDB	0-6%	9,896		522		71.9 years
	GMIB	0-6%	1,662		463			0.5 years
	GMWB	0-8%*	181,457		4,295

* Ranges shown based on simple interest. The upper limits of 5% or 8% simple interest are approximately equal to 4.1% and 6.0%, respectively, on a compound interest basis over a typical 10-year bonus period. The combination GMWB category also includes benefits with a defined increase in the withdrawal percentage under pre-defined non-market conditions.

Liabilities for these benefits, as established according to the methodologies described below, are as follows:

	September 30, 2022					December 31, 2021
Benefit Type	Liability (in millions)		Net Amount at Risk (in millions)		Weighted Average Attained Age	Liability (in millions)		Net Amount at Risk (in millions)		Weighted Average Attained Age
Insurance benefits *	$	954	$	17,676	64.6 years	$	943	$	18,506	64.0 years
Account balance adjustments	145		N/A		N/A	141		N/A		N/A

*    Amounts for the universal life benefits are for the total of the plans containing any policies having projected non-zero excess benefits, and thus may include some policies with zero projected excess benefits.

Separate Account Balances

Account balances of contracts with guarantees were invested in variable separate accounts as follows (in millions):

	September 30,		December 31,
	2022		2021
Fund type:
Equity	$	110,764	$	154,368
Bond	15,818		20,207
Balanced	33,221		43,185
Money market	2,358		1,564
Total	$	162,161	$	219,324

GMDB liabilities in the General Account

GMDB liabilities reflected in the general account were as follows (in millions):

	Nine Months Ended September 30,
	2022		2021
Balance as of beginning of year	$	1,370	$	1,418
Incurred guaranteed benefits	1,147		173
Paid guaranteed benefits	(146)		(78)
Balance as of end of period	$	2,371	$	1,513

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Long-Term Debt (Tables)

9 Months Ended

Sep. 30, 2022

Debt Disclosure [Abstract]

Aggregate Carrying Value of Long-Term Debt

The aggregate carrying value of long-term debt were as follows (in millions):

	September 30,		December 31,
	2022		2021
Long-Term Debt
Senior Notes due 2023	$	597	$	596
Senior Notes due 2027	397		—
Senior Notes due 2031	493		495
Senior Notes due 2032	347		—
Senior Notes due 2051	488		490
Term loan due 2023	—		751
Surplus notes	250		250
FHLBI bank loans	62		67
Total long-term debt	$	2,634	$	2,649

Contractual Maturities of Long-term Debt

The following table presents the contractual maturities of the Company's long-term debt as of September 30, 2022 (in millions):

	Calendar Year
	2023		2024		2025		2026		2027 and thereafter		Total
Long-term debt	$	597	$	—	$	—	$	—	$	2,037	$	2,634

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Operating Costs and Other Expenses (Tables)

9 Months Ended

Sep. 30, 2022

Operating Costs And Other Expenses [Abstract]

Summary of Operating Costs and Other Expenses

The following table is a summary of the Company’s operating costs and other expenses (in millions):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Asset-based commission expenses	$	242	$	286	$	767	$	834
Other commission expenses	195		263		664		793
Sub-advisor expenses	80		101		252		289
General and administrative expenses	220		241		614		769
Deferral of acquisition costs	(145)		(192)		(496)		(595)
Total operating costs and other expenses	$	592	$	699	$	1,801	$	2,090

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Accumulated Other Comprehensive Income (Loss) (Tables)

9 Months Ended

Sep. 30, 2022

Equity [Abstract]

Changes in Accumulated Other Comprehensive Income

The following table represents changes in the balance of AOCI, net of income tax, related to unrealized investment gains (losses) (in millions):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Balance, beginning of period (1)	$	(3,722)	$	2,390	$	1,744	$	3,821
Change in unrealized appreciation (depreciation) of investments	(2,383)		(415)		(9,254)		(2,068)
Change in unrealized appreciation (depreciation) - other	126		15		438		86
Change in deferred tax asset	313		86		1,413		429
Other comprehensive income (loss) before reclassifications	(1,944)		(314)		(7,403)		(1,553)
Reclassifications from AOCI, net of tax	(52)		(31)		(59)		(223)
Other comprehensive income (loss)	(1,996)		(345)		(7,462)		(1,776)
Balance, end of period (1)	$	(5,718)	$	2,045	$	(5,718)	$	2,045

(1)Includes $(2,316) million, $287 million and $481 million related to the investments held within the funds withheld account related to the Athene Reinsurance Transaction as of September 30, 2022, December 31, 2021 and September 30, 2021, respectively.

Amounts Reclassified Out of AOCI

The following table represents amounts reclassified out of AOCI (in millions):

AOCI Components	Amounts Reclassified from AOCI				Affected Line Item in the Condensed Consolidated Income Statement
	Three Months Ended September 30,
	2022		2021
Net unrealized investment gain (loss):
Net realized gain (loss) on investments	$	(47)	$	(45)	Net gains (losses) on derivatives and investments
Other impaired securities	(25)		—		Net gains (losses) on derivatives and investments
Net unrealized gain (loss)	(72)		(45)
Amortization of deferred acquisition costs	5		5
Reclassifications, before income taxes	(67)		(40)
Income tax expense (benefit)	(15)		(9)
Reclassifications, net of income taxes	$	(52)	$	(31)

AOCI Components	Amounts Reclassified from AOCI				Affected Line Item in the Condensed Consolidated Income Statement
	Nine Months Ended September 30,
	2022		2021
Net unrealized investment gain (loss):
Net realized gain (loss) on investments	$	(85)	$	(313)	Net gains (losses) on derivatives and investments
Other impaired securities	5		—		Net gains (losses) on derivatives and investments
Net unrealized gain (loss)	(80)		(313)
Amortization of deferred acquisition costs	5		28
Reclassifications, before income taxes	(75)		(285)
Income tax expense (benefit)	(16)		(62)
Reclassifications, net of income taxes	$	(59)	$	(223)

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Equity (Tables)

9 Months Ended

Sep. 30, 2022

Equity [Abstract]

Schedule of Share Repurchase Activities

The following table represents share repurchase activities as part of this share repurchase program:

Period	Number of Shares Repurchased	Total Payments  (in millions)		Average Price Paid Per Share
2021(October 1 - December 31)	5,778,649	$	211	$	36.51
Total 2021	5,778,649	211		36.51
2022 (January 1- March 31)	3,433,610	140		40.84
2022 (April 1- June 30)	1,870,854	66		35.15
2022 (July 1- September 30)	1,200,000	39		32.75
2022 (October 1 - November 3)	792,105	25		31.58
Total 2022	7,296,569	$	270	$	37.04

Schedule of Changes in the Balance of Common Shares Outstanding

The following table represents changes in the balance of common stock outstanding:

	Common Stock Issued	Treasury Stock		Total Common Stock Outstanding
Shares at December 31, 2021	94,464,343	(5,778,649)		88,685,694
Share-based compensation programs	9,675	1,476,037	(1)	1,485,712
Shares repurchased under repurchase program	—	(6,504,464)		(6,504,464)
Shares at September 30, 2022	94,474,018	(10,807,076)		83,666,942

(1) Represents net shares issued from treasury stock pursuant to the Company’s share-based compensation programs.

Schedule of Dividends Paid

The following table presents declaration date, record date, payment date and dividends paid on per JFI’s common shares:

Quarter Ended	Declaration Date	Record Date	Payment Date	Dividends Paid Per Share
03/31/2022	February 28, 2022	March 14, 2022	March 23, 2022	$0.55
06/30/2022	May 9, 2022	June 2, 2022	June 16, 2022	$0.55
09/30/2022	August 8, 2022	September 1, 2022	September 15, 2022	$0.55

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Earnings Per Share (Tables)

9 Months Ended

Sep. 30, 2022

Earnings Per Share [Abstract]

Calculation of Earnings Per Common Share

The following table sets forth the calculation of earnings per common share:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
	(in millions, except share and per share data)
Net income (loss) attributable to Jackson Financial Inc.	$	1,479	$	206	$	6,407	$	2,598
Weighted average shares of common stock outstanding - basic	85,098,192		94,464,343		86,126,710		94,464,343
Dilutive common shares	2,797,727		—		3,198,774		—
Weighted average shares of common stock outstanding - diluted	87,895,919		94,464,343		89,325,484		94,464,343
Earnings per share—common stock
Basic	$	17.38	$	2.18	$	74.39	$	27.50
Diluted	$	16.83	$	2.18	$	71.73	$	27.50

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Revision and Reclassifications of Prior Period Financial Statements (Tables)

9 Months Ended

Sep. 30, 2022

Accounting Changes and Error Corrections [Abstract]

Schedule of Error Corrections and Prior Period Adjustments

Condensed Consolidated Balance Sheets (in millions)	As Previously Reported		Impact of Revisions and Reclassifications		As Revised
	12/31/21		12/31/21		12/31/21
Assets
Other assets	$	853	$	75	$	928
Total assets	375,484		75		375,559
Liabilities
Reserves for future policy benefits and claims payable	17,629		1,038		18,667
Other contract holder funds	59,689		(963)		58,726
Notes issued by consolidated variable interest entities, at fair value under fair value option	—		1,404		1,404
Other liabilities	3,944		(1,404)		2,540
Total liabilities	364,410		75		364,485
Total liabilities and equity	$	375,484	$	75	$	375,559

Condensed Consolidated Income Statements  (in millions)	As Previously Reported				Impact of Revisions and Reclassifications				As Revised
	Three Months Ended		Nine Months Ended		Three Months Ended		Nine Months Ended		Three Months Ended		Nine Months Ended
	9/30/21		9/30/21		9/30/21		9/30/21		9/30/21		9/30/21
Revenues
Fee income	$	1,962	$	5,674	$	101	$	289	$	2,063	$	5,963
Premium	35		100		2		15		37		115
Net investment income	852		2,576		(15)		(8)		837		2,568
Total revenues	1,487		7,226		88		296		1,575		7,522
Benefits and Expenses
Death, other policy benefits and change in policy reserves, net of deferrals	394		887		11		46		405		933
Interest credited on other contract holder funds, net of deferrals and amortization	217		657		(8)		(27)		209		630
Operating costs and other expenses, net of deferrals	614		1,812		85		278		699		2,090
Amortization of deferred acquisition costs	4		552		—		(1)		4		551
Total benefits and expenses	1,235		3,927		88		296		1,323		4,223
Net income (loss)	$	268	$	2,784	$	—	$	—	$	268	$	2,784

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Business and Basis of Presentation (Details) $ in Millions			1 Months Ended
	Sep. 09, 2021	Jun. 01, 2020 USD ($)	Aug. 31, 2020 USD ($)	Sep. 30, 2022
Class of Stock [Line Items]
Stock split conversion ratio	104,960.3836276
Jackson
Class of Stock [Line Items]
Capital contribution to subsidiary			$ 500
Athene
Class of Stock [Line Items]
Reinsurance quota share basis		100.00%
Reinsurance agreement, ceding commission		$ 1,200
Prudential | Jackson Financial
Class of Stock [Line Items]
Ownership interest				9.10%
Athene | Jackson Financial
Class of Stock [Line Items]
Ownership interest		9.90%		9.00%
Investment agreement, committed capital		$ 500
Economic ownership percentage		11.10%		9.00%

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New Accounting Standards (Details) - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021	Dec. 31, 2020
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Equity	$ 8,974	$ 10,394
Cumulative effect of change in accounting principle | Minimum
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Equity			$ 2,000
Cumulative effect of change in accounting principle | Maximum
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Equity			$ 4,000

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Segment Information - Segment Results (Details) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022 USD ($)	Sep. 30, 2021 USD ($)	Sep. 30, 2022 USD ($) segment	Sep. 30, 2021 USD ($)
Segment Reporting [Abstract]
Number of reportable segments | segment			3
Segment Reporting Information [Line Items]
Fee income	$ 1,908	$ 2,063	$ 5,854	$ 5,963
Premiums	36	37	105	115
Net investment income	640	837	2,022	2,568
Income (loss) on operating derivatives	1,419	(1,379)	6,891	(1,194)
Other income	19	17	60	70
Total revenues	4,022	1,575	14,932	7,522
Death, other policy benefits and change in policy reserves, net of deferrals	586	405	2,090	933
Interest credited on other contract holder funds, net of deferrals and amortization	224	209	628	630
Interest expense	29	6	73	19
Operating costs and other expenses, net of deferrals	592	699	1,801	2,090
Amortization of deferred acquisition costs	564	4	2,276	551
Total benefits and expenses	1,995	1,323	6,868	4,223
Pretax income (loss)	2,027	252	8,064	3,299
Operating Segments
Segment Reporting Information [Line Items]
Fee income	1,133	1,332	3,545	3,853
Premiums	39	41	114	125
Net investment income	340	471	1,102	1,462
Income (loss) on operating derivatives	3	38	62	117
Other income	19	17	60	70
Total revenues	1,534	1,899	4,883	5,627
Death, other policy benefits and change in policy reserves, net of deferrals	181	254	690	719
Interest credited on other contract holder funds, net of deferrals and amortization	224	209	628	630
Interest expense	29	6	73	19
Operating costs and other expenses, net of deferrals	592	685	1,800	2,026
Amortization of deferred acquisition costs	104	174	627	268
Total benefits and expenses	1,130	1,328	3,818	3,662
Pretax income (loss)	404	571	1,065	1,965
Operating Segments | Retail Annuities
Segment Reporting Information [Line Items]
Fee income	1,002	1,194	3,144	3,433
Premiums	3	2	6	15
Net investment income	72	180	299	541
Income (loss) on operating derivatives	2	13	20	42
Other income	11	12	33	35
Total revenues	1,090	1,401	3,502	4,066
Death, other policy benefits and change in policy reserves, net of deferrals	5	38	54	90
Interest credited on other contract holder funds, net of deferrals and amortization	72	56	191	168
Interest expense	8	6	19	17
Operating costs and other expenses, net of deferrals	541	614	1,648	1,780
Amortization of deferred acquisition costs	100	160	602	232
Total benefits and expenses	726	874	2,514	2,287
Pretax income (loss)	364	527	988	1,779
Operating Segments | Institutional Products
Segment Reporting Information [Line Items]
Fee income	0	0	0	0
Premiums	0	0	0	0
Net investment income	80	69	216	189
Income (loss) on operating derivatives	(8)	(1)	(13)	(1)
Other income	0	0	0	0
Total revenues	72	68	203	188
Death, other policy benefits and change in policy reserves, net of deferrals	0	0	0	0
Interest credited on other contract holder funds, net of deferrals and amortization	51	47	137	147
Interest expense	0	(2)	0	0
Operating costs and other expenses, net of deferrals	1	2	4	4
Amortization of deferred acquisition costs	0	0	0	0
Total benefits and expenses	52	47	141	151
Pretax income (loss)	20	21	62	37
Operating Segments | Closed Life and Annuity Blocks
Segment Reporting Information [Line Items]
Fee income	118	123	358	371
Premiums	36	39	108	110
Net investment income	166	245	522	723
Income (loss) on operating derivatives	7	18	35	56
Other income	8	7	25	29
Total revenues	335	432	1,048	1,289
Death, other policy benefits and change in policy reserves, net of deferrals	176	216	636	629
Interest credited on other contract holder funds, net of deferrals and amortization	101	106	300	315
Interest expense	0	0	0	0
Operating costs and other expenses, net of deferrals	22	38	74	131
Amortization of deferred acquisition costs	3	4	7	11
Total benefits and expenses	302	364	1,017	1,086
Pretax income (loss)	33	68	31	203
Corporate and Other
Segment Reporting Information [Line Items]
Fee income	13	15	43	49
Premiums	0	0	0	0
Net investment income	22	(23)	65	9
Income (loss) on operating derivatives	2	8	20	20
Other income	0	(2)	2	6
Total revenues	37	(2)	130	84
Death, other policy benefits and change in policy reserves, net of deferrals	0	0	0	0
Interest credited on other contract holder funds, net of deferrals and amortization	0	0	0	0
Interest expense	21	2	54	2
Operating costs and other expenses, net of deferrals	28	31	74	111
Amortization of deferred acquisition costs	1	10	18	25
Total benefits and expenses	50	43	146	138
Pretax income (loss)	(13)	(45)	(16)	(54)
Intersegment eliminations
Segment Reporting Information [Line Items]
Total revenues	$ (18)	$ (17)	$ (52)	$ (52)

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Segment Information - Reconciliation of Revenues (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Segment Reporting Information [Line Items]
Total revenues	$ 4,022	$ 1,575	$ 14,932	$ 7,522
Net gains (losses) on derivatives and investments	1,419	(1,379)	6,891	(1,194)
Operating Segments
Segment Reporting Information [Line Items]
Total revenues	1,534	1,899	4,883	5,627
Net gains (losses) on derivatives and investments	3	38	62	117
Segment Reconciling Items
Segment Reporting Information [Line Items]
Fees attributed to variable annuity benefit reserves	771	728	2,300	2,101
Net gains (losses) on derivatives and investments	1,416	(1,418)	6,829	(1,311)
Net investment income (loss) related to noncontrolling interests	(11)	62	51	186
Consolidated investments	(1)	4	(68)	35
Net investment income on funds withheld assets	$ 313	$ 300	$ 937	$ 884

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Segment Information - Reconciliation of Benefits and Expenses (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Segment Reporting Information [Line Items]
Total benefits and expenses	$ 1,995	$ 1,323	$ 6,868	$ 4,223
Operating Segments
Segment Reporting Information [Line Items]
Total benefits and expenses	1,130	1,328	3,818	3,662
Segment Reconciling Items
Segment Reporting Information [Line Items]
Benefits attributed to variable annuity benefit reserves	65	25	158	91
Amortization of DAC and DSI related to non-operating revenues and expenses	458	(169)	1,648	284
Statement of Position 03-1 reserve movements	341	127	1,242	123
Other items	$ 1	$ 12	$ 2	$ 63

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Segment Information - Reconciliation of Net Income (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Segment Reporting Information [Line Items]
Pretax adjusted operating earnings	$ 2,027	$ 252	$ 8,064	$ 3,299
Guaranteed Benefits And Hedging Results [Abstract]
Net movement in freestanding derivatives			4,362	(1,413)
Net realized investment gains (losses) including change in fair value of funds withheld embedded derivative			(131)	204
Pretax income (loss) attributable to Jackson Financial Inc.	2,038	190	8,013	3,113
Income tax expense (benefit)	559	(16)	1,606	515
Net income (loss) attributable to Jackson Financial Inc.	1,479	206	6,407	2,598
Operating Segments
Segment Reporting Information [Line Items]
Pretax adjusted operating earnings	404	571	1,065	1,965
Segment Reconciling Items
Guaranteed Benefits And Hedging Results [Abstract]
Fees attributed to variable annuity benefit reserves	771	728	2,300	2,101
Net movement in freestanding derivatives	(253)	(493)	1,118	(3,966)
Net reserve and embedded derivative movements	714	(997)	1,781	2,222
DAC and DSI impact	(458)	169	(1,648)	(284)
Assumption changes	0	0	0	0
Total guaranteed benefits and hedging results	774	(593)	3,551	73
Net realized investment gains (losses) including change in fair value of funds withheld embedded derivative	549	(79)	2,529	219
Net investment income on funds withheld assets	313	300	937	884
Other items	$ (2)	$ (9)	$ (69)	$ (28)

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Investments - Narrative (Details)			3 Months Ended				9 Months Ended		10 Months Ended	12 Months Ended
	Sep. 30, 2022 USD ($) state	Dec. 31, 2021 USD ($)	Sep. 30, 2022 USD ($) state	Mar. 31, 2022	Sep. 30, 2021 USD ($)	Jun. 30, 2021 USD ($)	Sep. 30, 2022 USD ($) state	Sep. 30, 2021 USD ($)	Jan. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)	Jun. 30, 2022 USD ($)	Dec. 31, 2020 USD ($)
Summary of Investment Holdings [Line Items]
Debt securities, rated by investment advisor	$ 72,000,000	$ 13,000,000	$ 72,000,000				$ 72,000,000			$ 13,000,000
Securities on deposit with regulatory authorities	90,000,000	117,000,000	90,000,000				90,000,000			117,000,000
Aggregate fair value of securities sold at a loss			$ 1,068,000,000		$ 161,000,000		$ 3,966,000,000	$ 1,345,000,000
Aggregate fair value of securities sold at a loss, percentage of book value			94.00%		98.00%		93.00%	95.00%
Proceeds from sales of available-for-sale debt securities			$ 1,400,000,000		$ 1,000,000,000.0		$ 6,300,000,000	$ 1,900,000,000
Unconsolidated VIEs, exposure to loss	4,321,000,000	3,860,000,000	4,321,000,000				4,321,000,000			3,860,000,000
Equity securities	234,000,000	279,000,000	234,000,000				234,000,000			279,000,000
Mortgage loans	11,223,000,000	11,482,000,000	11,223,000,000				11,223,000,000			11,482,000,000
Mortgage loans, allowance for credit loss	79,000,000	94,000,000	79,000,000		96,000,000	$ 135,000,000	79,000,000	96,000,000		94,000,000	$ 80,000,000	$ 179,000,000
Financing receivables, accrued interest receivable	46,000,000		46,000,000		48,000,000		$ 46,000,000	48,000,000
Deferral of interest and principal payments, repayment period, COVID-19							1 year
Deferred interest and principal payments, COVID-19	11,000,000		11,000,000				$ 11,000,000
Recorded investment	17,000,000	6,000,000	17,000,000				17,000,000			6,000,000
Unpaid principal balance, no related allowance	18,000,000	7,000,000	18,000,000				18,000,000			7,000,000
Average recorded investment	15,000,000	2,000,000
Investment income	0	0
Stressed loans	4,000,000	0	4,000,000				4,000,000			0
Other invested assets	3,622,000,000	3,199,000,000	3,622,000,000				3,622,000,000			3,199,000,000
Sale of limited partnership investments					168,000,000	$ 236,000,000			$ 420,000,000
Securities loaned	$ 25,000,000	17,000,000	$ 25,000,000				$ 25,000,000			17,000,000
Securities loaned, minimum percent of fair value required as collateral	102.00%		102.00%				102.00%
Securities loaned, cash collateral	$ 27,000,000	17,000,000	$ 27,000,000				$ 27,000,000			17,000,000
Repurchase agreements, weighted average interest rate				0.07%			0.24%
Repurchase agreement balance	0	1,572,000,000	0				$ 0			1,572,000,000
Interest expense			29,000,000		6,000,000		73,000,000	19,000,000
Repurchase agreements, highest level of amount outstanding							584,000,000	2,349,000,000
Unfunded partnership investment commitment
Summary of Investment Holdings [Line Items]
Unfunded commitments	1,577,000,000	300,000,000	1,577,000,000				$ 1,577,000,000			300,000,000
Minimum
Summary of Investment Holdings [Line Items]
Deferral of interest and principal payments, period, COVID-19							6 months
Maximum
Summary of Investment Holdings [Line Items]
Deferral of interest and principal payments, period, COVID-19							14 months
Repurchase agreements
Summary of Investment Holdings [Line Items]
Short term borrowings, average outstanding amount							$ 186,000,000			1,548,000,000
Commercial mortgage loans
Summary of Investment Holdings [Line Items]
Mortgage loans	10,500,000,000	10,500,000,000	10,500,000,000				10,500,000,000			10,500,000,000
Mortgage loans, allowance for credit loss	$ 76,000,000	85,000,000	$ 76,000,000				$ 76,000,000			85,000,000
Financing receivables, collateralized by properties, number of states | state	38		38				38
Financing receivables, accrued interest receivable	$ 37,000,000	32,000,000	$ 37,000,000				$ 37,000,000			32,000,000
Residential mortgage loans
Summary of Investment Holdings [Line Items]
Mortgage loans	1,280,000,000	939,000,000	1,280,000,000				1,280,000,000			939,000,000
Mortgage loans, allowance for credit loss	$ 3,000,000	9,000,000	$ 3,000,000				$ 3,000,000			9,000,000
Financing receivables, collateralized by properties, number of states | state	50		50				50
Financing receivables, accrued interest receivable	$ 9,000,000	13,000,000	$ 9,000,000				$ 9,000,000			13,000,000
Unconsolidated VIEs
Summary of Investment Holdings [Line Items]
Equity securities	26,000,000	33,000,000	26,000,000				26,000,000			33,000,000
Corporate securities | Single corporate obligor
Summary of Investment Holdings [Line Items]
Debt securities, unrealized loss	$ 61,000,000	$ 16,000,000	$ 61,000,000				$ 61,000,000			$ 16,000,000
Corporate securities, utilities
Summary of Investment Holdings [Line Items]
Debt securities, unrealized losses, percentage	16.00%		16.00%				16.00%
Corporate securities, healthcare
Summary of Investment Holdings [Line Items]
Debt securities, unrealized losses, percentage	10.00%		10.00%				10.00%
Corporate securities, financial services
Summary of Investment Holdings [Line Items]
Debt securities, unrealized losses, percentage		16.00%								16.00%
Corporate securities, consumer goods
Summary of Investment Holdings [Line Items]
Debt securities, unrealized losses, percentage		15.00%								15.00%
Equity securities
Summary of Investment Holdings [Line Items]
Unrealized gains (losses)			$ (17,000,000)		6,000,000		$ (48,000,000)	21,000,000
Federal Home Loan Bank capital stock
Summary of Investment Holdings [Line Items]
Other invested assets	$ 146,000,000	$ 125,000,000	146,000,000				146,000,000			$ 125,000,000
Real estate
Summary of Investment Holdings [Line Items]
Other invested assets	238,000,000	243,000,000	238,000,000				238,000,000			243,000,000
Real estate, foreclosed properties
Summary of Investment Holdings [Line Items]
Other invested assets	0	1,000,000	0				0			1,000,000
Limited partnerships
Summary of Investment Holdings [Line Items]
Other invested assets	$ 3,238,000,000	$ 2,831,000,000	3,238,000,000				$ 3,238,000,000			$ 2,831,000,000
Repurchase agreements
Summary of Investment Holdings [Line Items]
Interest expense			$ 0		$ 0			$ 1,000,000
Investment grade
Summary of Investment Holdings [Line Items]
Debt securities in an unrealized loss position, percentage	73.00%	76.00%	73.00%				73.00%			76.00%
Below investment grade
Summary of Investment Holdings [Line Items]
Debt securities in an unrealized loss position, percentage	7.00%	2.00%	7.00%				7.00%			2.00%
Not rated
Summary of Investment Holdings [Line Items]
Debt securities in an unrealized loss position, percentage	20.00%	22.00%	20.00%				20.00%			22.00%
Below investment grade or not rated
Summary of Investment Holdings [Line Items]
Debt securities, unrealized losses, percentage	20.00%	16.00%	20.00%				20.00%			16.00%

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Investments - Composition of Fair Value of Debt Securities Classified by Rating (Details)	Sep. 30, 2022	Dec. 31, 2021
Investment Holdings [Line Items]
Percent of total debt securities carrying value	100.00%	100.00%
Investment grade
Investment Holdings [Line Items]
Percent of total debt securities carrying value	92.20%	93.50%
Investment grade | AAA
Investment Holdings [Line Items]
Percent of total debt securities carrying value	15.30%	14.50%
Investment grade | AA
Investment Holdings [Line Items]
Percent of total debt securities carrying value	8.80%	9.60%
Investment grade | A
Investment Holdings [Line Items]
Percent of total debt securities carrying value	29.90%	28.50%
Investment grade | BBB
Investment Holdings [Line Items]
Percent of total debt securities carrying value	38.20%	40.90%
Below investment grade
Investment Holdings [Line Items]
Percent of total debt securities carrying value	7.80%	6.50%
Below investment grade | BB
Investment Holdings [Line Items]
Percent of total debt securities carrying value	4.00%	3.60%
Below investment grade | B and below
Investment Holdings [Line Items]
Percent of total debt securities carrying value	3.80%	2.90%

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Investments - Debt Securities - Amortized Cost, Gross Unrealized Gains and Losses, Fair Value and Allowance For Credit Loss (Details) - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
Summary of Investment Holdings [Line Items]
Amortized Cost	$ 51,094	$ 51,206
Allowance for Credit Loss	31	9
Gross Unrealized Gains	80	2,790
Gross Unrealized Losses	7,236	612
Fair Value	43,907	53,375
U.S. government securities
Summary of Investment Holdings [Line Items]
Amortized Cost	5,064	4,525
Allowance for Credit Loss	0	0
Gross Unrealized Gains	0	97
Gross Unrealized Losses	1,008	301
Fair Value	4,056	4,321
Other government securities
Summary of Investment Holdings [Line Items]
Amortized Cost	1,712	1,489
Allowance for Credit Loss	3	0
Gross Unrealized Gains	2	147
Gross Unrealized Losses	262	17
Fair Value	1,449	1,619
Public utilities
Summary of Investment Holdings [Line Items]
Amortized Cost	5,901	6,069
Allowance for Credit Loss	0	0
Gross Unrealized Gains	19	671
Gross Unrealized Losses	811	25
Fair Value	5,109	6,715
Corporate securities
Summary of Investment Holdings [Line Items]
Amortized Cost	29,748	29,701
Allowance for Credit Loss	23	0
Gross Unrealized Gains	30	1,682
Gross Unrealized Losses	4,360	237
Fair Value	25,395	31,146
Residential mortgage-backed
Summary of Investment Holdings [Line Items]
Amortized Cost	492	528
Allowance for Credit Loss	5	2
Gross Unrealized Gains	20	46
Gross Unrealized Losses	52	3
Fair Value	455	569
Commercial mortgage-backed
Summary of Investment Holdings [Line Items]
Amortized Cost	1,818	1,968
Allowance for Credit Loss	0	0
Gross Unrealized Gains	0	76
Gross Unrealized Losses	173	6
Fair Value	1,645	2,038
Other asset-backed securities
Summary of Investment Holdings [Line Items]
Amortized Cost	6,359	6,926
Allowance for Credit Loss	0	7
Gross Unrealized Gains	9	71
Gross Unrealized Losses	570	23
Fair Value	$ 5,798	$ 6,967

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Investments - Debt Securities Maturities (Details) - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
Amortized Cost
Due in 1 year or less	$ 1,333
Due after 1 year through 5 years	9,655
Due after 5 years through 10 years	14,158
Due after 10 years through 20 years	9,260
Due after 20 years	8,019
Total	51,094	$ 51,206
Allowance for Credit Loss
Due in 1 year or less	0
Due after 1 year through 5 years	3
Due after 5 years through 10 years	20
Due after 10 years through 20 years	3
Due after 20 years	0
Total	31	9
Gross Unrealized Gains
Due in 1 year or less	1
Due after 1 year through 5 years	8
Due after 5 years through 10 years	9
Due after 10 years through 20 years	32
Due after 20 years	1
Total	80	2,790
Gross Unrealized Losses
Due in 1 year or less	6
Due after 1 year through 5 years	497
Due after 5 years through 10 years	1,896
Due after 10 years through 20 years	1,842
Due after 20 years	2,200
Total	7,236	612
Fair Value
Due in 1 year or less	1,328
Due after 1 year through 5 years	9,163
Due after 5 years through 10 years	12,251
Due after 10 years through 20 years	7,447
Due after 20 years	5,820
Debt securities	43,907	53,375
Residential mortgage-backed
Amortized Cost
Without single maturity	492
Total	492	528
Allowance for Credit Loss
Without single maturity	5
Total	5	2
Gross Unrealized Gains
Without single maturity	20
Total	20	46
Gross Unrealized Losses
Without single maturity	52
Total	52	3
Fair Value
Without single maturity	455
Debt securities	455	569
Commercial mortgage-backed
Amortized Cost
Without single maturity	1,818
Total	1,818	1,968
Allowance for Credit Loss
Without single maturity	0
Total	0	0
Gross Unrealized Gains
Without single maturity	0
Total	0	76
Gross Unrealized Losses
Without single maturity	173
Total	173	6
Fair Value
Without single maturity	1,645
Debt securities	1,645	2,038
Other asset-backed securities
Amortized Cost
Without single maturity	6,359
Total	6,359	6,926
Allowance for Credit Loss
Without single maturity	0
Total	0	7
Gross Unrealized Gains
Without single maturity	9
Total	9	71
Gross Unrealized Losses
Without single maturity	570
Total	570	23
Fair Value
Without single maturity	5,798
Debt securities	$ 5,798	$ 6,967

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Investments - Residential Mortgage-Backed Securities (Details) - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
Summary of Investment Holdings [Line Items]
Amortized Cost	$ 51,094	$ 51,206
Allowance for Credit Loss	31	9
Gross Unrealized Gains	80	2,790
Gross Unrealized Losses	7,236	612
Fair Value	43,907	53,375
Non-agency RMBS
Summary of Investment Holdings [Line Items]
Amortized Cost	321	361
Allowance for Credit Loss	5	2
Gross Unrealized Gains	20	44
Gross Unrealized Losses	32	2
Fair Value	304	401
Non-agency RMBS | Prime
Summary of Investment Holdings [Line Items]
Amortized Cost	209	228
Allowance for Credit Loss	3	1
Gross Unrealized Gains	2	10
Gross Unrealized Losses	25	2
Fair Value	183	235
Non-agency RMBS | Alt-A
Summary of Investment Holdings [Line Items]
Amortized Cost	83	94
Allowance for Credit Loss	2	1
Gross Unrealized Gains	9	21
Gross Unrealized Losses	7	0
Fair Value	83	114
Non-agency RMBS | Subprime
Summary of Investment Holdings [Line Items]
Amortized Cost	29	39
Allowance for Credit Loss	0	0
Gross Unrealized Gains	9	13
Gross Unrealized Losses	0	0
Fair Value	$ 38	$ 52

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Investments - Debt Securities in Continuous Unrealized Loss Position (Details) $ in Millions	Sep. 30, 2022 USD ($) security	Dec. 31, 2021 USD ($) security
Summary of Investment Holdings [Line Items]
Less than 12 months, gross unrealized losses	$ 5,113	$ 246
Less than 12 months, fair value	$ 34,727	$ 11,135
Less than 12 months, # of securities | security	4,393	1,344
12 months or longer, gross unrealized losses	$ 2,123	$ 366
12 months or longer, fair value	$ 5,196	$ 4,006
12 months or longer, # of securities | security	601	104
Total, gross unrealized losses	$ 7,236	$ 612
Total, fair value	$ 39,923	$ 15,141
Total, # of securities | security	4,868	1,448
U.S. government securities
Summary of Investment Holdings [Line Items]
Less than 12 months, gross unrealized losses	$ 276	$ 2
Less than 12 months, fair value	$ 2,260	$ 107
Less than 12 months, # of securities | security	41	16
12 months or longer, gross unrealized losses	$ 732	$ 299
12 months or longer, fair value	$ 1,634	$ 3,190
12 months or longer, # of securities | security	8	7
Total, gross unrealized losses	$ 1,008	$ 301
Total, fair value	$ 3,894	$ 3,297
Total, # of securities | security	43	23
Other government securities
Summary of Investment Holdings [Line Items]
Less than 12 months, gross unrealized losses	$ 256	$ 17
Less than 12 months, fair value	$ 1,371	$ 252
Less than 12 months, # of securities | security	154	23
12 months or longer, gross unrealized losses	$ 6	$ 0
12 months or longer, fair value	$ 47	$ 4
12 months or longer, # of securities | security	10	2
Total, gross unrealized losses	$ 262	$ 17
Total, fair value	$ 1,418	$ 256
Total, # of securities | security	164	25
Public utilities
Summary of Investment Holdings [Line Items]
Less than 12 months, gross unrealized losses	$ 659	$ 17
Less than 12 months, fair value	$ 4,476	$ 721
Less than 12 months, # of securities | security	530	93
12 months or longer, gross unrealized losses	$ 152	$ 7
12 months or longer, fair value	$ 336	$ 99
12 months or longer, # of securities | security	55	8
Total, gross unrealized losses	$ 811	$ 24
Total, fair value	$ 4,812	$ 820
Total, # of securities | security	575	101
Corporate securities
Summary of Investment Holdings [Line Items]
Less than 12 months, gross unrealized losses	$ 3,217	$ 180
Less than 12 months, fair value	$ 19,878	$ 6,343
Less than 12 months, # of securities | security	2,649	728
12 months or longer, gross unrealized losses	$ 1,143	$ 58
12 months or longer, fair value	$ 2,704	$ 661
12 months or longer, # of securities | security	396	69
Total, gross unrealized losses	$ 4,360	$ 238
Total, fair value	$ 22,582	$ 7,004
Total, # of securities | security	2,936	797
Residential mortgage-backed
Summary of Investment Holdings [Line Items]
Less than 12 months, gross unrealized losses	$ 40	$ 3
Less than 12 months, fair value	$ 293	$ 174
Less than 12 months, # of securities | security	217	109
12 months or longer, gross unrealized losses	$ 12	$ 0
12 months or longer, fair value	$ 71	$ 11
12 months or longer, # of securities | security	75	12
Total, gross unrealized losses	$ 52	$ 3
Total, fair value	$ 364	$ 185
Total, # of securities | security	292	121
Commercial mortgage-backed
Summary of Investment Holdings [Line Items]
Less than 12 months, gross unrealized losses	$ 146	$ 5
Less than 12 months, fair value	$ 1,537	$ 314
Less than 12 months, # of securities | security	192	37
12 months or longer, gross unrealized losses	$ 27	$ 1
12 months or longer, fair value	$ 95	$ 30
12 months or longer, # of securities | security	16	3
Total, gross unrealized losses	$ 173	$ 6
Total, fair value	$ 1,632	$ 344
Total, # of securities | security	207	40
Other asset-backed securities
Summary of Investment Holdings [Line Items]
Less than 12 months, gross unrealized losses	$ 519	$ 22
Less than 12 months, fair value	$ 4,912	$ 3,224
Less than 12 months, # of securities | security	610	338
12 months or longer, gross unrealized losses	$ 51	$ 1
12 months or longer, fair value	$ 309	$ 11
12 months or longer, # of securities | security	41	3
Total, gross unrealized losses	$ 570	$ 23
Total, fair value	$ 5,221	$ 3,235
Total, # of securities | security	651	341

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Investments - Rollforward of Allowance for Debt Securities Credit Loss (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward]
Balance	$ 43	$ 7	$ 9	$ 14
Additions for which credit loss was not previously recorded	13	1	52	2
Changes for securities with previously recorded credit loss	(11)	17	(10)	9
Additions for purchases of PCD debt securities	0	0	0	0
Reductions from charge-offs	0	0	0	0
Reductions for securities disposed	(3)	(16)	(4)	(16)
Securities intended/required to be sold before recovery of amortized cost basis	(11)	0	(16)	0
Balance	31	9	31	9
Accrued interest receivable on debt securities	414	397	414	397
U.S. government securities
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward]
Balance	0	0	0	0
Additions for which credit loss was not previously recorded	0	0	0	0
Changes for securities with previously recorded credit loss	0	0	0	0
Additions for purchases of PCD debt securities	0	0	0	0
Reductions from charge-offs	0	0	0	0
Reductions for securities disposed	0	0	0	0
Securities intended/required to be sold before recovery of amortized cost basis	0	0	0	0
Balance	0	0	0	0
Other government securities
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward]
Balance	6	0	0	0
Additions for which credit loss was not previously recorded	0	0	6	0
Changes for securities with previously recorded credit loss	0	0	0	0
Additions for purchases of PCD debt securities	0	0	0	0
Reductions from charge-offs	0	0	0	0
Reductions for securities disposed	(3)	0	(3)	0
Securities intended/required to be sold before recovery of amortized cost basis	0	0	0	0
Balance	3	0	3	0
Public utilities
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward]
Balance	1	0	0	0
Additions for which credit loss was not previously recorded	0	0	1	0
Changes for securities with previously recorded credit loss	(1)	0	(1)	0
Additions for purchases of PCD debt securities	0	0	0	0
Reductions from charge-offs	0	0	0	0
Reductions for securities disposed	0	0	0	0
Securities intended/required to be sold before recovery of amortized cost basis	0	0	0	0
Balance	0	0	0	0
Corporate securities
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward]
Balance	30	0	0	0
Additions for which credit loss was not previously recorded	12	0	42	0
Changes for securities with previously recorded credit loss	(8)	0	(3)	0
Additions for purchases of PCD debt securities	0	0	0	0
Reductions from charge-offs	0	0	0	0
Reductions for securities disposed	0	0	0	0
Securities intended/required to be sold before recovery of amortized cost basis	(11)	0	(16)	0
Balance	23	0	23	0
Residential mortgage-backed
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward]
Balance	6	1	2	0
Additions for which credit loss was not previously recorded	1	1	3	2
Changes for securities with previously recorded credit loss	(2)	0	1	0
Additions for purchases of PCD debt securities	0	0	0	0
Reductions from charge-offs	0	0	0	0
Reductions for securities disposed	0	0	(1)	0
Securities intended/required to be sold before recovery of amortized cost basis	0	0	0	0
Balance	5	2	5	2
Commercial mortgage-backed
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward]
Balance	0	0	0	0
Additions for which credit loss was not previously recorded	0	0	0	0
Changes for securities with previously recorded credit loss	0	0	0	0
Additions for purchases of PCD debt securities	0	0	0	0
Reductions from charge-offs	0	0	0	0
Reductions for securities disposed	0	0	0	0
Securities intended/required to be sold before recovery of amortized cost basis	0	0	0	0
Balance	0	0	0	0
Other asset-backed securities
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward]
Balance	0	6	7	14
Additions for which credit loss was not previously recorded	0	0	0	0
Changes for securities with previously recorded credit loss	0	17	(7)	9
Additions for purchases of PCD debt securities	0	0	0	0
Reductions from charge-offs	0	0	0	0
Reductions for securities disposed	0	(16)	0	(16)
Securities intended/required to be sold before recovery of amortized cost basis	0	0	0	0
Balance	$ 0	$ 7	$ 0	$ 7

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Investments - Sources of Net Investment Income (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Investment expenses:
Derivative trading commission	$ (3)	$ (1)	$ (5)	$ (2)
Depreciation on real estate	(2)	(4)	(8)	(8)
Expenses related to consolidated entities	(26)	(8)	(62)	(24)
Other investment income (expenses)	(18)	(16)	(53)	(53)
Total investment expenses	(49)	(29)	(128)	(87)
Net investment income	640	837	2,022	2,568
Debt securities
Net Investment Income [Line Items]
Total investment income excluding funds withheld assets	306	272	792	872
Debt securities, at fair value under the fair value option
Investment expenses:
Net investment income	(8)	(1)	(103)	37
Equity securities
Net Investment Income [Line Items]
Total investment income excluding funds withheld assets	(25)	0	(18)	6
Mortgage loans
Net Investment Income [Line Items]
Total investment income excluding funds withheld assets	70	79	211	242
Policy loans
Net Investment Income [Line Items]
Total investment income excluding funds withheld assets	18	20	52	55
Limited partnerships
Net Investment Income [Line Items]
Total investment income excluding funds withheld assets	(7)	193	151	586
Other investment income
Net Investment Income [Line Items]
Total investment income excluding funds withheld assets	14	2	25	10
Investments, excluding funds withheld assets
Net Investment Income [Line Items]
Total investment income excluding funds withheld assets	376	566	1,213	1,771
Funds withheld assets
Investment expenses:
Net investment income	$ 313	$ 300	$ 937	$ 884

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Investments - Net Gains (Losses) on Derivatives and Investments (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Available-for-sale securities
Realized gains on sale	$ 3	$ 28	$ 32	$ 149
Realized losses on sale	(57)	(1)	(298)	(59)
Credit loss income (expense)	(6)	(17)	(5)	(10)
Credit loss income (expense) on mortgage loans	(5)	14	(2)	62
Other	59	13	142	62
Net gains (losses) excluding derivatives and funds withheld assets	(6)	37	(131)	204
Net gains (losses) on derivative instruments	1,770	(1,166)	7,974	(805)
Total net gains (losses) on derivatives and investments	1,419	(1,379)	6,891	(1,194)
Derivatives excluding funds withheld under reinsurance treaties
Available-for-sale securities
Net gains (losses) on derivative instruments	870	(1,301)	4,362	(1,413)
Derivatives related to funds withheld under reinsurance treaties
Available-for-sale securities
Net gains (losses) on derivative instruments	900	135	3,612	608
Net gains (losses) on funds withheld reinsurance treaties	$ 555	$ (115)	$ 2,660	$ 15

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Investments - Asset and Liability Information for Consolidated VIEs (Details) - USD ($) $ in Millions	Sep. 30, 2022	Jun. 30, 2022	Dec. 31, 2021	Sep. 30, 2021	Jun. 30, 2021	Dec. 31, 2020
Summary of Investment Holdings [Line Items]
Debt securities, trading	$ 102		$ 117
Equity securities	234		279
Other invested assets	3,622		3,199
Other assets	1,846		928
Total assets	302,970		375,559
Notes issued by consolidated VIEs, at fair value under fair value option	1,745		1,404
Total other liabilities	2,352		2,540
Securities lending payable	27		17
Total liabilities	293,267		364,485
Equity	9,703	$ 10,310	11,074	$ 10,856	$ 10,990	$ 9,923
Variable Interest Entity, Primary Beneficiary
Summary of Investment Holdings [Line Items]
Debt securities, at fair value under fair value option	1,965		1,546
Debt securities, trading	102		117
Equity securities	111		129
Other invested assets	1,496		1,309
Cash and cash equivalents	53		120
Other assets	18		45
Total assets	3,745		3,266
Notes issued by consolidated VIEs, at fair value under fair value option	1,745		1,404
Other liabilities	407		307
Total other liabilities	2,152		1,711
Securities lending payable	5		4
Total liabilities	2,157		1,715
Equity	$ 729		$ 680

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Investments - Rollforward of Mortgages Allowance for Credit Loss (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Balance	$ 80	$ 135	$ 94	$ 179
Charge offs, net of recoveries	0	0	0	0
Provision (release)	(1)	(39)	(15)	(83)
Balance	79	96	79	96
Financing receivables, accrued interest receivable	46	48	46	48
Apartment
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Balance	21	26	19	58
Charge offs, net of recoveries	0	0	0	0
Provision (release)	(5)	(5)	(3)	(37)
Balance	16	21	16	21
Hotel
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Balance	18	33	9	34
Charge offs, net of recoveries	0	0	0	0
Provision (release)	(1)	(18)	8	(19)
Balance	17	15	17	15
Office
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Balance	16	20	28	25
Charge offs, net of recoveries	0	0	0	0
Provision (release)	(3)	3	(15)	(2)
Balance	13	23	13	23
Retail
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Balance	13	23	17	24
Charge offs, net of recoveries	0	0	0	0
Provision (release)	8	(7)	4	(8)
Balance	21	16	21	16
Warehouse
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Balance	9	12	12	24
Charge offs, net of recoveries	0	0	0	0
Provision (release)	0	(1)	(3)	(13)
Balance	9	11	9	11
Residential Mortgage
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Balance	3	21	9	14
Charge offs, net of recoveries	0	0	0	0
Provision (release)	0	(11)	(6)	(4)
Balance	$ 3	$ 10	$ 3	$ 10

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Investments - Information About Credit Quality and Vintage Year of Commercial Mortgage Loans (Details) - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
Financing Receivable, Credit Quality Indicator [Line Items]
Year one	$ 1,073	$ 1,887
Year two	1,889	1,447
Year three	1,587	1,671
Year four	1,591	1,691
Year five	1,534	1,420
Prior	4,053	3,362
Revolving Loans	4	4
Total	$ 11,731	$ 11,482
% of Total	100.00%	100.00%
Commercial mortgage loans
Financing Receivable, Credit Quality Indicator [Line Items]
Year one	$ 598	$ 1,615
Year two	1,630	1,381
Year three	1,349	1,631
Year four	1,567	1,656
Year five	1,514	1,390
Prior	3,789	2,866
Revolving Loans	4	4
Total	$ 10,451	$ 10,543
% of Total	100.00%	100.00%
Residential mortgage loans
Financing Receivable, Credit Quality Indicator [Line Items]
Year one	$ 475	$ 272
Year two	259	66
Year three	238	40
Year four	24	35
Year five	20	30
Prior	264	496
Revolving Loans	0	0
Total	$ 1,280	$ 939
% of Total	100.00%	100.00%
Residential mortgage loans | Performing
Financing Receivable, Credit Quality Indicator [Line Items]
Year one	$ 473	$ 268
Year two	256	22
Year three	227	18
Year four	19	16
Year five	14	7
Prior	218	396
Revolving Loans	0	0
Total	$ 1,207	$ 727
% of Total	94.00%	77.00%
Residential mortgage loans | Nonperforming
Financing Receivable, Credit Quality Indicator [Line Items]
Year one	$ 2	$ 4
Year two	3	44
Year three	11	22
Year four	5	19
Year five	6	23
Prior	46	100
Revolving Loans	0	0
Total	$ 73	$ 212
% of Total	6.00%	23.00%
Greater than 1.20x | Commercial mortgage loans
Financing Receivable, Credit Quality Indicator [Line Items]
Year one	$ 548	$ 796
Year two	1,071	974
Year three	957	1,532
Year four	1,439	1,293
Year five	1,345	1,257
Prior	3,456	2,609
Revolving Loans	4	4
Total	$ 8,820	$ 8,465
% of Total	84.00%	80.00%
1.00x - 1.20x | Commercial mortgage loans
Financing Receivable, Credit Quality Indicator [Line Items]
Year one	$ 50	$ 651
Year two	427	329
Year three	250	81
Year four	84	90
Year five	35	11
Prior	185	68
Revolving Loans	0	0
Total	$ 1,031	$ 1,230
% of Total	10.00%	12.00%
Less than 1.00x | Commercial mortgage loans
Financing Receivable, Credit Quality Indicator [Line Items]
Year one	$ 0	$ 168
Year two	132	78
Year three	142	18
Year four	44	273
Year five	134	122
Prior	148	189
Revolving Loans	0	0
Total	$ 600	$ 848
% of Total	6.00%	8.00%
Less than 70% | Commercial mortgage loans
Financing Receivable, Credit Quality Indicator [Line Items]
Year one	$ 518	$ 1,270
Year two	1,288	1,346
Year three	1,305	1,592
Year four	1,528	1,599
Year five	1,458	1,305
Prior	3,637	2,703
Revolving Loans	4	4
Total	$ 9,738	$ 9,819
% of Total	93.00%	93.00%
70% - 80% | Commercial mortgage loans
Financing Receivable, Credit Quality Indicator [Line Items]
Year one	$ 80	$ 345
Year two	342	35
Year three	44	0
Year four	14	52
Year five	52	85
Prior	143	153
Revolving Loans	0	0
Total	$ 675	$ 670
% of Total	6.00%	6.00%
80% - 100% | Commercial mortgage loans
Financing Receivable, Credit Quality Indicator [Line Items]
Year one	$ 0	$ 0
Year two	0	0
Year three	0	39
Year four	25	5
Year five	4	0
Prior	0	0
Revolving Loans	0	0
Total	$ 29	$ 44
% of Total	0.00%	0.00%
Greater than 100% | Commercial mortgage loans
Financing Receivable, Credit Quality Indicator [Line Items]
Year one	$ 0	$ 0
Year two	0	0
Year three	0	0
Year four	0	0
Year five	0	0
Prior	9	10
Revolving Loans	0	0
Total	$ 9	$ 10
% of Total	0.00%	0.00%

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Investments - Mortgages by Standing (Details) - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
Financing Receivable, Credit Quality Indicator [Line Items]
Carrying Value	$ 11,731	$ 11,482
Restructured	0	0
In the Process of Foreclosure	17	6
In Good Standing
Financing Receivable, Credit Quality Indicator [Line Items]
Carrying Value	11,658	11,270
Greater than 90 Days Delinquent
Financing Receivable, Credit Quality Indicator [Line Items]
Carrying Value	56	206
Commercial mortgage loans
Financing Receivable, Credit Quality Indicator [Line Items]
Carrying Value	10,451	10,543
Restructured	0	0
In the Process of Foreclosure	0	0
Commercial mortgage loans | In Good Standing
Financing Receivable, Credit Quality Indicator [Line Items]
Carrying Value	10,451	10,543
Commercial mortgage loans | Greater than 90 Days Delinquent
Financing Receivable, Credit Quality Indicator [Line Items]
Carrying Value	0	0
Commercial mortgage loans | Apartment
Financing Receivable, Credit Quality Indicator [Line Items]
Carrying Value	3,775	3,755
Restructured	0	0
In the Process of Foreclosure	0	0
Commercial mortgage loans | Apartment | In Good Standing
Financing Receivable, Credit Quality Indicator [Line Items]
Carrying Value	3,775	3,755
Commercial mortgage loans | Apartment | Greater than 90 Days Delinquent
Financing Receivable, Credit Quality Indicator [Line Items]
Carrying Value	0	0
Commercial mortgage loans | Hotel
Financing Receivable, Credit Quality Indicator [Line Items]
Carrying Value	1,025	1,054
Restructured	0	0
In the Process of Foreclosure	0	0
Commercial mortgage loans | Hotel | In Good Standing
Financing Receivable, Credit Quality Indicator [Line Items]
Carrying Value	1,025	1,054
Commercial mortgage loans | Hotel | Greater than 90 Days Delinquent
Financing Receivable, Credit Quality Indicator [Line Items]
Carrying Value	0	0
Commercial mortgage loans | Office
Financing Receivable, Credit Quality Indicator [Line Items]
Carrying Value	1,885	1,889
Restructured	0	0
In the Process of Foreclosure	0	0
Commercial mortgage loans | Office | In Good Standing
Financing Receivable, Credit Quality Indicator [Line Items]
Carrying Value	1,885	1,889
Commercial mortgage loans | Office | Greater than 90 Days Delinquent
Financing Receivable, Credit Quality Indicator [Line Items]
Carrying Value	0	0
Commercial mortgage loans | Retail
Financing Receivable, Credit Quality Indicator [Line Items]
Carrying Value	2,093	2,104
Restructured	0	0
In the Process of Foreclosure	0	0
Commercial mortgage loans | Retail | In Good Standing
Financing Receivable, Credit Quality Indicator [Line Items]
Carrying Value	2,093	2,104
Commercial mortgage loans | Retail | Greater than 90 Days Delinquent
Financing Receivable, Credit Quality Indicator [Line Items]
Carrying Value	0	0
Commercial mortgage loans | Warehouse
Financing Receivable, Credit Quality Indicator [Line Items]
Carrying Value	1,673	1,741
Restructured	0	0
In the Process of Foreclosure	0	0
Commercial mortgage loans | Warehouse | In Good Standing
Financing Receivable, Credit Quality Indicator [Line Items]
Carrying Value	1,673	1,741
Commercial mortgage loans | Warehouse | Greater than 90 Days Delinquent
Financing Receivable, Credit Quality Indicator [Line Items]
Carrying Value	0	0
Residential mortgage loans
Financing Receivable, Credit Quality Indicator [Line Items]
Carrying Value	1,280	939
Residential mortgage loans | Residential
Financing Receivable, Credit Quality Indicator [Line Items]
Carrying Value	1,280	939
Restructured	0	0
In the Process of Foreclosure	17	6
Residential mortgage loans | Residential | Financial Asset Acquired with Credit Deterioration
Financing Receivable, Credit Quality Indicator [Line Items]
In the Process of Foreclosure	14	5
Residential mortgage loans | Residential | In Good Standing
Financing Receivable, Credit Quality Indicator [Line Items]
Carrying Value	1,207	727
Residential mortgage loans | Residential | Greater than 90 Days Delinquent
Financing Receivable, Credit Quality Indicator [Line Items]
Carrying Value	56	206
Residential mortgage loans | Residential | Greater than 90 Days Delinquent | Financial Asset Acquired with Credit Deterioration
Financing Receivable, Credit Quality Indicator [Line Items]
Carrying Value	48	202
Mezzanine loans | Apartment | In Good Standing
Financing Receivable, Credit Quality Indicator [Line Items]
Carrying Value	379	278
Mezzanine loans | Hotel | In Good Standing
Financing Receivable, Credit Quality Indicator [Line Items]
Carrying Value	41	75
Mezzanine loans | Office | In Good Standing
Financing Receivable, Credit Quality Indicator [Line Items]
Carrying Value	237	252
Mezzanine loans | Retail | In Good Standing
Financing Receivable, Credit Quality Indicator [Line Items]
Carrying Value	27	27
Mezzanine loans | Warehouse | In Good Standing
Financing Receivable, Credit Quality Indicator [Line Items]
Carrying Value	$ 56	$ 26

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Derivative Instruments - Aggregate Contractual Notional Amounts and Fair Values of Derivatives (Details) - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
Assets
Fair Value	$ 1,950	$ 1,417
Liabilities
Fair Value	2,225	41
Freestanding derivatives
Derivative [Line Items]
Contractual/Notional Amount	166,254	97,665
Assets
Fair Value	1,767	1,374
Liabilities
Fair Value	2,185	35
Net Fair Value, Asset (Liability)	(418)	1,339
Freestanding derivatives | Cross-currency swaps
Derivative [Line Items]
Contractual/Notional Amount	1,825	1,767
Assets
Fair Value	92	55
Liabilities
Fair Value	166	35
Net Fair Value, Asset (Liability)	(74)	20
Freestanding derivatives | Equity index call options
Derivative [Line Items]
Contractual/Notional Amount	15,500	21,000
Assets
Fair Value	27	606
Liabilities
Fair Value	0	0
Net Fair Value, Asset (Liability)	27	606
Freestanding derivatives | Equity index futures
Derivative [Line Items]
Contractual/Notional Amount	28,891	18,258
Assets
Fair Value	0	0
Liabilities
Fair Value	0	0
Net Fair Value, Asset (Liability)	0	0
Freestanding derivatives | Equity index put options
Derivative [Line Items]
Contractual/Notional Amount	33,000	27,500
Assets
Fair Value	1,564	150
Liabilities
Fair Value	0	0
Net Fair Value, Asset (Liability)	1,564	150
Freestanding derivatives | Interest rate swaps
Derivative [Line Items]
Contractual/Notional Amount	7,728	7,728
Assets
Fair Value	4	430
Liabilities
Fair Value	238	0
Net Fair Value, Asset (Liability)	(234)	430
Freestanding derivatives | Interest rate swaps - cleared
Derivative [Line Items]
Contractual/Notional Amount	1,500	1,500
Assets
Fair Value	0	0
Liabilities
Fair Value	0	0
Net Fair Value, Asset (Liability)	0	0
Freestanding derivatives | Put-swaptions
Derivative [Line Items]
Contractual/Notional Amount	22,000	19,000
Assets
Fair Value	0	133
Liabilities
Fair Value	1,781	0
Net Fair Value, Asset (Liability)	(1,781)	133
Freestanding derivatives | Interest rate futures
Derivative [Line Items]
Contractual/Notional Amount	55,071	912
Assets
Fair Value	0	0
Liabilities
Fair Value	0	0
Net Fair Value, Asset (Liability)	0	0
Freestanding derivatives | Total return swaps
Derivative [Line Items]
Contractual/Notional Amount	739	0
Assets
Fair Value	80	0
Liabilities
Fair Value	0	0
Net Fair Value, Asset (Liability)	80	0
Embedded derivatives
Assets
Fair Value	484	0
Liabilities
Fair Value	977	4,071
Net Fair Value, Asset (Liability)	(493)	(4,071)
Embedded derivatives | Variable annuity embedded derivatives
Assets
Fair Value	484	0
Liabilities
Fair Value	0	2,626
Net Fair Value, Asset (Liability)	484	(2,626)
Embedded derivatives | Fixed index annuity embedded derivatives
Assets
Fair Value	0	0
Liabilities
Fair Value	967	1,439
Net Fair Value, Asset (Liability)	(967)	(1,439)
Embedded derivatives | RILA embedded derivatives
Assets
Fair Value	0	0
Liabilities
Fair Value	10	6
Net Fair Value, Asset (Liability)	(10)	(6)
Derivatives related to funds withheld under reinsurance treaties
Derivative [Line Items]
Contractual/Notional Amount	1,618	1,277
Assets
Fair Value	3,515	43
Liabilities
Fair Value	40	126
Net Fair Value, Asset (Liability)	3,475	(83)
Derivatives related to funds withheld under reinsurance treaties | Cross-currency swaps
Derivative [Line Items]
Contractual/Notional Amount	158	158
Assets
Fair Value	32	10
Liabilities
Fair Value	0	1
Net Fair Value, Asset (Liability)	32	9
Derivatives related to funds withheld under reinsurance treaties | Cross-currency forwards
Derivative [Line Items]
Contractual/Notional Amount	1,460	1,119
Assets
Fair Value	151	33
Liabilities
Fair Value	40	5
Net Fair Value, Asset (Liability)	111	28
Derivatives related to funds withheld under reinsurance treaties | Funds withheld embedded derivative
Assets
Fair Value	3,332	0
Liabilities
Fair Value	0	120
Net Fair Value, Asset (Liability)	3,332	(120)
Derivative assets
Derivative [Line Items]
Contractual/Notional Amount	167,872	98,942
Assets
Fair Value	5,766	1,417
Derivative liabilities
Liabilities
Fair Value	3,202	4,232
Derivative
Liabilities
Net Fair Value, Asset (Liability)	$ 2,564	$ (2,815)

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Derivative Instruments - Gains and Losses, and Change in Fair Value of Derivatives (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Derivative Instruments, Gain (Loss) [Line Items]
Net gains (losses) on derivative instruments	$ 1,770	$ (1,166)	$ 7,974	$ (805)
Derivatives excluding funds withheld under reinsurance treaties
Derivative Instruments, Gain (Loss) [Line Items]
Net gains (losses) on derivative instruments	870	(1,301)	4,362	(1,413)
Derivatives related to funds withheld under reinsurance treaties
Derivative Instruments, Gain (Loss) [Line Items]
Net gains (losses) on derivative instruments	900	135	3,612	608
Cross-currency swaps | Derivatives excluding funds withheld under reinsurance treaties
Derivative Instruments, Gain (Loss) [Line Items]
Net gains (losses) on derivative instruments	(19)	(9)	(101)	(53)
Cross-currency swaps | Derivatives related to funds withheld under reinsurance treaties
Derivative Instruments, Gain (Loss) [Line Items]
Net gains (losses) on derivative instruments	9	6	24	11
Equity index call options | Derivatives excluding funds withheld under reinsurance treaties
Derivative Instruments, Gain (Loss) [Line Items]
Net gains (losses) on derivative instruments	(275)	16	(1,506)	814
Equity index futures | Derivatives excluding funds withheld under reinsurance treaties
Derivative Instruments, Gain (Loss) [Line Items]
Net gains (losses) on derivative instruments	1,038	(196)	5,279	(2,866)
Equity index put options | Derivatives excluding funds withheld under reinsurance treaties
Derivative Instruments, Gain (Loss) [Line Items]
Net gains (losses) on derivative instruments	168	(71)	675	(682)
Interest rate swaps | Derivatives excluding funds withheld under reinsurance treaties
Derivative Instruments, Gain (Loss) [Line Items]
Net gains (losses) on derivative instruments	(202)	0	(613)	(148)
Interest rate swaps - cleared | Derivatives excluding funds withheld under reinsurance treaties
Derivative Instruments, Gain (Loss) [Line Items]
Net gains (losses) on derivative instruments	(67)	(10)	(204)	(60)
Put-swaptions | Derivatives excluding funds withheld under reinsurance treaties
Derivative Instruments, Gain (Loss) [Line Items]
Net gains (losses) on derivative instruments	(751)	(62)	(1,905)	42
Interest rate futures | Derivatives excluding funds withheld under reinsurance treaties
Derivative Instruments, Gain (Loss) [Line Items]
Net gains (losses) on derivative instruments	(179)	(123)	(491)	(896)
Total return swaps | Freestanding derivatives
Derivative Instruments, Gain (Loss) [Line Items]
Net gains (losses) on derivative instruments	39	0	47	0
Fixed index annuity embedded derivatives | Derivatives excluding funds withheld under reinsurance treaties
Derivative Instruments, Gain (Loss) [Line Items]
Net gains (losses) on derivative instruments	0	(1)	5	(3)
RILA embedded derivatives | Derivatives excluding funds withheld under reinsurance treaties
Derivative Instruments, Gain (Loss) [Line Items]
Net gains (losses) on derivative instruments	58	0	121	0
Variable annuity embedded derivatives | Derivatives excluding funds withheld under reinsurance treaties
Derivative Instruments, Gain (Loss) [Line Items]
Net gains (losses) on derivative instruments	1,060	(845)	3,055	2,439
Cross-currency forwards | Derivatives related to funds withheld under reinsurance treaties
Derivative Instruments, Gain (Loss) [Line Items]
Net gains (losses) on derivative instruments	67	28	136	42
Funds withheld embedded derivative | Derivatives related to funds withheld under reinsurance treaties
Derivative Instruments, Gain (Loss) [Line Items]
Net gains (losses) on derivative instruments	$ 824	$ 101	$ 3,452	$ 555

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Derivative Instruments - Narrative (Details) - USD ($)	Sep. 30, 2022	Dec. 31, 2021
Derivative [Line Items]
Derivative assets by counterparty	$ 1,453,000,000	$ 1,376,000,000
Derivative assets, held collateral	1,343,000,000	1,576,000,000
Derivative liabilities by counterparty	1,728,000,000	0
Derivative liabilities, held collateral	1,707,000,000	0
Derivative disbursement obligation	21,000,000	200,000,000
Derivative amount allowed to claim	110,000,000	0
Embedded derivatives
Derivative [Line Items]
Net fair value, derivative asset (liability)	(493,000,000)	(4,071,000,000)
Derivatives related to funds withheld under reinsurance treaties
Derivative [Line Items]
Net fair value, derivative asset (liability)	3,475,000,000	(83,000,000)
Funds withheld embedded derivative | Derivatives related to funds withheld under reinsurance treaties
Derivative [Line Items]
Net fair value, derivative asset (liability)	$ 3,332,000,000	$ (120,000,000)

XML

Derivative Instruments - Gross and Net Information About Financial Instruments Subject to Master Netting Arrangements (Details) - USD ($)	Sep. 30, 2022	Dec. 31, 2021
Freestanding derivative assets
Gross Amounts Recognized	$ 1,950,000,000	$ 1,417,000,000
Gross Amounts Offset in the Condensed Consolidated Balance Sheets	0	0
Net Amounts Presented in the Condensed Consolidated Balance Sheets	1,950,000,000	1,417,000,000
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets, Financial Instruments	496,000,000	41,000,000
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets, Cash Collateral	1,031,000,000	817,000,000
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets, Securities Collateral	310,000,000	555,000,000
Net Amount	113,000,000	4,000,000
Freestanding derivative liabilities
Gross Amounts Recognized	2,225,000,000	41,000,000
Gross Amounts Offset in the Condensed Consolidated Balance Sheets	0	0
Fair Value	2,225,000,000	41,000,000
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets, Financial Instruments	496,000,000	41,000,000
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets, Cash Collateral	313,000,000	0
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets, Securities Collateral	1,365,000,000	0
Net Amount	51,000,000	0
Securities loaned
Gross Amounts Recognized	27,000,000	17,000,000
Gross Amounts Offset in the Condensed Consolidated Balance Sheets	0	0
Net Amounts Presented in the Condensed Consolidated Balance Sheets	27,000,000	17,000,000
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets, Financial Instruments	0	0
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets, Cash Collateral	27,000,000	17,000,000
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets, Securities Collateral	0	0
Net Amount	0	0
Repurchase agreements
Gross Amounts Recognized	0	1,572,000,000
Gross Amounts Offset in the Condensed Consolidated Balance Sheets	0	0
Net Amounts Presented in the Condensed Consolidated Balance Sheets	0	1,572,000,000
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets, Financial Instruments	0	0
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets, Cash Collateral	0	0
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets, Securities Collateral	0	1,572,000,000
Net Amount	0	0
Total financial liabilities
Gross Amounts Recognized	2,252,000,000	1,630,000,000
Gross Amounts Offset in the Condensed Consolidated Balance Sheets	0	0
Net Amounts Presented in the Condensed Consolidated Balance Sheets	2,252,000,000	1,630,000,000
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets, Financial Instruments	496,000,000	41,000,000
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets, Cash Collateral	340,000,000	17,000,000
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets, Securities Collateral	1,365,000,000	1,572,000,000
Net Amount	$ 51,000,000	$ 0

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Fair Value Measurements - Fair Value and Carrying Value of Financial Instruments (Details) - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
Assets
Debt securities	$ 43,907	$ 53,375
Equity securities	234	279
Mortgage loans	11,223	11,482
Policy loans	4,446	4,475
Freestanding derivative instruments	1,950	1,417
Federal Home Loan Bank of Indianapolis ("FHLBI") capital stock	146	125
Cash and cash equivalents	5,331	2,623
Guaranteed minimum income benefits ("GMIB") reinsurance recoverable	30,796	33,126
Separate account assets	185,042	248,949
Liabilities
Annuity reserves	603	627
Reserves for guaranteed investment contracts	1,162	894
Trust instruments supported by funding agreements	4,944	5,986
FHLB funding agreements	2,252	1,950
Funds withheld payable under reinsurance treaties	23,900	29,007
Long-term debt	2,634	2,649
Securities lending payable	27	17
Freestanding derivative instruments	2,225	41
Notes issued by consolidated VIEs, at fair value under fair value option	1,745	1,404
Repurchase agreements	0	1,572
Separate account liabilities	185,042	248,949
Carrying Value
Assets
Debt securities	43,907	53,375
Equity securities	234	279
Mortgage loans	11,731	11,482
Limited partnerships	3,238	2,831
Policy loans	4,446	4,475
Freestanding derivative instruments	1,950	1,417
Federal Home Loan Bank of Indianapolis ("FHLBI") capital stock	146	125
Cash and cash equivalents	5,331	2,623
Guaranteed minimum income benefits ("GMIB") reinsurance recoverable	207	262
Separate account assets	185,042	248,949
Liabilities
Annuity reserves	37,390	40,389
Reserves for guaranteed investment contracts	1,162	894
Trust instruments supported by funding agreements	4,944	5,986
FHLB funding agreements	2,252	1,950
Funds withheld payable under reinsurance treaties	23,900	29,007
Long-term debt	2,634	2,649
Securities lending payable	27	17
Freestanding derivative instruments	2,225	41
Notes issued by consolidated VIEs, at fair value under fair value option	1,745	1,404
Repurchase agreements	0	1,572
Separate account liabilities	185,042	248,949
Fair Value
Assets
Debt securities	43,907	53,375
Equity securities	234	279
Mortgage loans	11,093	11,910
Limited partnerships	3,238	2,831
Policy loans	4,446	4,475
Freestanding derivative instruments	1,950	1,417
Federal Home Loan Bank of Indianapolis ("FHLBI") capital stock	146	125
Cash and cash equivalents	5,331	2,623
Guaranteed minimum income benefits ("GMIB") reinsurance recoverable	207	262
Separate account assets	185,042	248,949
Liabilities
Annuity reserves	32,592	50,116
Reserves for guaranteed investment contracts	1,124	923
Trust instruments supported by funding agreements	4,765	6,175
FHLB funding agreements	2,385	1,938
Funds withheld payable under reinsurance treaties	23,900	29,007
Long-term debt	2,339	2,745
Securities lending payable	27	17
Freestanding derivative instruments	2,225	41
Notes issued by consolidated VIEs, at fair value under fair value option	1,745	1,404
Repurchase agreements	0	1,572
Separate account liabilities	$ 185,042	$ 248,949

XML

Fair Value Measurements - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair value option, debt securities	$ 2,124		$ 2,124		$ 1,711
Notes issued by consolidated VIEs, at fair value under fair value option	1,745		1,745		1,404
Debt securities	43,907		43,907		53,375
Transfers from Level 3 to Level 2	4	$ 29	9	$ 52
Transfers from Level 2 to Level 3	$ 30	$ 3	$ 65	$ 21
FHLBI capital stock, stock price (in usd per share)	$ 100		$ 100
Fair Value
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Notes issued by consolidated VIEs, at fair value under fair value option	$ 1,745		$ 1,745		1,404
Debt securities	43,907		43,907		53,375
Variable Interest Entity, Primary Beneficiary
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair value option, debt securities	1,965		1,965		1,546
Notes issued by consolidated VIEs, at fair value under fair value option	1,745		1,745		1,404
Funds withheld assets
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair value option, assets carrying amount	4,152		4,152		3,632
Level 3
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Notes issued by consolidated VIEs, at fair value under fair value option	0		0		0
Unobservable Inputs | Level 3
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Debt securities	$ 1		$ 1		$ 2

XML

Fair Value Measurements - Fair Value Option (Details) - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
Fair Value, Option, Quantitative Disclosures [Line Items]
Fair value	$ 508	$ 0
Aggregate contractual principal	11,223	$ 11,482
Mortgage loans
Fair Value, Option, Quantitative Disclosures [Line Items]
Aggregate contractual principal	$ 520

XML

Fair Value Measurements - Assets and Liabilities Carried at Fair Value by Hierarchy (Details) - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
Assets
Debt securities	$ 43,907	$ 53,375
Equity securities	234	279
Mortgage loans	508	0
Limited partnerships	1	18
Policy loans	3,487	3,467
Freestanding derivative instruments	1,950	1,417
Cash and cash equivalents	5,331	2,623
GMIB reinsurance recoverable	207	262
Separate account assets	185,042	248,949
Total	240,667	310,390
Liabilities
Embedded derivative liabilities	493	4,071
Funds withheld payable under reinsurance treaties	314	3,759
Freestanding derivative instruments	2,225	41
Notes issued by consolidated VIEs, at fair value under fair value option	1,745	1,404
Total	4,777	9,275
Limited partnership investments measured at NAV	3,237	2,813
U.S. government securities
Assets
Debt securities	4,056	4,321
Other government securities
Assets
Debt securities	1,449	1,619
Public utilities
Assets
Debt securities	5,109	6,715
Corporate securities
Assets
Debt securities	25,395	31,146
Residential mortgage-backed
Assets
Debt securities	455	569
Commercial mortgage-backed
Assets
Debt securities	1,645	2,038
Other asset-backed securities
Assets
Debt securities	5,798	6,967
Derivatives related to funds withheld under reinsurance treaties
Assets
Freestanding derivative instruments	3,515	43
Liabilities
Freestanding derivative instruments	40	126
Funds withheld embedded derivative | Derivatives related to funds withheld under reinsurance treaties
Assets
Freestanding derivative instruments	3,332	0
Liabilities
Freestanding derivative instruments	0	120
Level 1
Assets
Equity securities	16	111
Mortgage loans	0
Limited partnerships	0	0
Policy loans	0	0
Freestanding derivative instruments	0	0
Cash and cash equivalents	5,331	2,623
GMIB reinsurance recoverable	0	0
Separate account assets	0	0
Total	8,859	7,055
Liabilities
Embedded derivative liabilities	0	0
Funds withheld payable under reinsurance treaties	0	0
Freestanding derivative instruments	0	0
Notes issued by consolidated VIEs, at fair value under fair value option	0	0
Total	0	0
Level 1 | U.S. government securities
Assets
Debt securities	3,512	4,321
Level 1 | Other government securities
Assets
Debt securities	0	0
Level 1 | Public utilities
Assets
Debt securities	0	0
Level 1 | Corporate securities
Assets
Debt securities	0	0
Level 1 | Residential mortgage-backed
Assets
Debt securities	0	0
Level 1 | Commercial mortgage-backed
Assets
Debt securities	0	0
Level 1 | Other asset-backed securities
Assets
Debt securities	0	0
Level 2
Assets
Equity securities	111	56
Mortgage loans	0
Limited partnerships	0	17
Policy loans	0	0
Freestanding derivative instruments	1,950	1,417
Cash and cash equivalents	0	0
GMIB reinsurance recoverable	0	0
Separate account assets	185,042	248,949
Total	227,421	299,484
Liabilities
Embedded derivative liabilities	977	1,445
Funds withheld payable under reinsurance treaties	0	0
Freestanding derivative instruments	2,225	41
Notes issued by consolidated VIEs, at fair value under fair value option	1,745	1,404
Total	4,947	2,890
Level 2 | U.S. government securities
Assets
Debt securities	544	0
Level 2 | Other government securities
Assets
Debt securities	1,449	1,619
Level 2 | Public utilities
Assets
Debt securities	5,109	6,715
Level 2 | Corporate securities
Assets
Debt securities	25,318	31,137
Level 2 | Residential mortgage-backed
Assets
Debt securities	455	569
Level 2 | Commercial mortgage-backed
Assets
Debt securities	1,645	2,038
Level 2 | Other asset-backed securities
Assets
Debt securities	5,798	6,967
Level 3
Assets
Equity securities	107	112
Mortgage loans	508
Limited partnerships	1	1
Policy loans	3,487	3,467
Freestanding derivative instruments	0	0
Cash and cash equivalents	0	0
GMIB reinsurance recoverable	207	262
Separate account assets	0	0
Total	4,387	3,851
Liabilities
Embedded derivative liabilities	(484)	2,626
Funds withheld payable under reinsurance treaties	314	3,759
Freestanding derivative instruments	0	0
Notes issued by consolidated VIEs, at fair value under fair value option	0	0
Total	(170)	6,385
Level 3 | U.S. government securities
Assets
Debt securities	0	0
Level 3 | Other government securities
Assets
Debt securities	0	0
Level 3 | Public utilities
Assets
Debt securities	0	0
Level 3 | Corporate securities
Assets
Debt securities	77	9
Level 3 | Residential mortgage-backed
Assets
Debt securities	0	0
Level 3 | Commercial mortgage-backed
Assets
Debt securities	0	0
Level 3 | Other asset-backed securities
Assets
Debt securities	0	0
Level 3 | GMWB Derivative
Liabilities
Embedded derivative liabilities	(484)
Level 3 | RILA embedded derivatives
Liabilities
Embedded derivative liabilities	10	6
Level 3 | Fixed index annuity embedded derivatives
Liabilities
Embedded derivative liabilities	$ 967	$ 1,439

XML

Fair Value Measurements - Balances of Level 3 Assets and Liabilities Measured at Fair Value with Corresponding Price Sources (Details) - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
Assets
Debt securities	$ 43,907	$ 53,375
Equity securities	234	279
Mortgage loans	508	0
Limited partnerships	1	18
Policy loans	4,446	4,475
Guaranteed minimum income benefits ("GMIB") reinsurance recoverable	30,796	33,126
Total	240,667	310,390
Liabilities
Embedded derivative liabilities	493	4,071
Funds withheld payable under reinsurance treaties	23,900	29,007
Total	4,777	9,275
Freestanding derivative instruments	1,950	1,417
Freestanding derivative instruments	2,225	41
Corporate securities
Assets
Debt securities	25,395	31,146
Derivatives related to funds withheld under reinsurance treaties
Liabilities
Freestanding derivative instruments	3,515	43
Freestanding derivative instruments	40	126
Derivatives related to funds withheld under reinsurance treaties | Funds withheld embedded derivative
Liabilities
Freestanding derivative instruments	3,332	0
Freestanding derivative instruments	0	120
Level 3
Assets
Equity securities	107	112
Mortgage loans	508
Limited partnerships	1	1
Policy loans	3,487	3,467
Guaranteed minimum income benefits ("GMIB") reinsurance recoverable	207	262
Total	4,387	3,851
Liabilities
Embedded derivative liabilities	(484)	2,626
Funds withheld payable under reinsurance treaties	314	3,759
Total	(170)	6,385
Freestanding derivative instruments	0	0
Freestanding derivative instruments	0	0
Level 3 | Corporate securities
Assets
Debt securities	77	9
Level 3 | Internal
Assets
Equity securities	0	1
Mortgage loans	0
Limited partnerships	1	1
Policy loans	3,487	3,467
Guaranteed minimum income benefits ("GMIB") reinsurance recoverable	207	262
Total	3,695	3,731
Liabilities
Embedded derivative liabilities	(484)	2,626
Funds withheld payable under reinsurance treaties	314	3,759
Total	(170)	6,385
Level 3 | Internal | Corporate securities
Assets
Debt securities	0	0
Level 3 | External
Assets
Equity securities	107	111
Mortgage loans	508
Limited partnerships	0	0
Policy loans	0	0
Guaranteed minimum income benefits ("GMIB") reinsurance recoverable	0	0
Total	692	120
Liabilities
Embedded derivative liabilities	0	0
Funds withheld payable under reinsurance treaties	0	0
Total	0	0
Level 3 | External | Corporate securities
Assets
Debt securities	$ 77	$ 9

XML

Fair Value Measurements - Quantitative Information on Significant Internally-Priced Level 3 Assets and Liabilities (Details) $ in Millions	Sep. 30, 2022 USD ($)	Dec. 31, 2021 USD ($)
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Guaranteed minimum income benefits ("GMIB") reinsurance recoverable	$ 30,796	$ 33,126
Embedded derivative liabilities	493	4,071
Level 3
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Guaranteed minimum income benefits ("GMIB") reinsurance recoverable	207	262
Embedded derivative liabilities	(484)	2,626
Level 3 | Discounted cash flow
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Guaranteed minimum income benefits ("GMIB") reinsurance recoverable	207	262
Embedded derivative liabilities	$ (484)	$ 2,626
Level 3 | Minimum | Discounted cash flow | Mortality
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
GMB reinsurance recoverable, measurement input	0.0001	0.0001
Embedded derivative liabilities, measurement input	0.0004	0.0004
Level 3 | Minimum | Discounted cash flow | Lapse
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
GMB reinsurance recoverable, measurement input	0.0330	0.0330
Embedded derivative liabilities, measurement input	0.0020	0.0020
Level 3 | Minimum | Discounted cash flow | Utilization
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
GMB reinsurance recoverable, measurement input	0.0000	0.0000
Embedded derivative liabilities, measurement input	0.0500	0.0500
Level 3 | Minimum | Discounted cash flow | Withdrawal
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
GMB reinsurance recoverable, measurement input	0.0375	0.0375
Embedded derivative liabilities, measurement input	0.5800	0.5800
Level 3 | Minimum | Discounted cash flow | Nonperformance risk
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
GMB reinsurance recoverable, measurement input	0.0000	0.0011
Embedded derivative liabilities, measurement input	0.0000	0.0011
Level 3 | Minimum | Discounted cash flow | Long-term Equity Volatility
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
GMB reinsurance recoverable, measurement input	0.1850	0.1850
Embedded derivative liabilities, measurement input	0.1850	0.1850
Level 3 | Maximum | Discounted cash flow | Mortality
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
GMB reinsurance recoverable, measurement input	0.2342	0.2342
Embedded derivative liabilities, measurement input	0.2145	0.2145
Level 3 | Maximum | Discounted cash flow | Lapse
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
GMB reinsurance recoverable, measurement input	0.0900	0.0900
Embedded derivative liabilities, measurement input	0.3090	0.3090
Level 3 | Maximum | Discounted cash flow | Utilization
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
GMB reinsurance recoverable, measurement input	0.2000	0.2000
Embedded derivative liabilities, measurement input	1.0000	1.0000
Level 3 | Maximum | Discounted cash flow | Withdrawal
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
GMB reinsurance recoverable, measurement input	0.0450	0.0450
Embedded derivative liabilities, measurement input	0.9700	0.9700
Level 3 | Maximum | Discounted cash flow | Nonperformance risk
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
GMB reinsurance recoverable, measurement input	0.0257	0.0150
Embedded derivative liabilities, measurement input	0.0257	0.0150
Level 3 | Maximum | Discounted cash flow | Long-term Equity Volatility
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
GMB reinsurance recoverable, measurement input	0.2398	0.2206
Embedded derivative liabilities, measurement input	0.2398	0.2206

XML

Fair Value Measurements - Level 3 Rollforwards (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Purchases, sales, issuances and settlements	$ 186	$ 90	$ 427	$ 45
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair Value	(601)
Total Realized/Unrealized Gains (Losses) Included in Net Income	1,085
Total Realized/Unrealized Gains (Losses) Included in Other Comprehensive Income	0
Purchases, sales, issuances and settlements	0
Transfers in and/or (out of ) Level 3	0
Fair Value	484		484
Embedded derivative liabilities
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair Value		(2,236)	(2,626)	(5,592)
Total Realized/Unrealized Gains (Losses) Included in Net Income		(856)	3,110	2,500
Total Realized/Unrealized Gains (Losses) Included in Other Comprehensive Income		0	0	0
Purchases, sales, issuances and settlements		0	0	0
Transfers in and/or (out of ) Level 3		0	0	0
Fair Value	484	(3,092)	484	(3,092)
Funds withheld payable under reinsurance treaties
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair Value	(1,141)	(4,082)	(3,759)	(4,453)
Total Realized/Unrealized Gains (Losses) Included in Net Income	857	236	3,349	565
Total Realized/Unrealized Gains (Losses) Included in Other Comprehensive Income	0	0	0	2
Purchases, sales, issuances and settlements	(30)	(86)	96	(46)
Transfers in and/or (out of ) Level 3	0	0	0	0
Fair Value	(314)	(3,932)	(314)	(3,932)
Debt securities | Corporate securities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair Value	47	31	9	29
Total Realized/Unrealized Gains (Losses) Included in Net Income	(5)	0	0	2
Total Realized/Unrealized Gains (Losses) Included in Other Comprehensive Income	(1)	0	(1)	0
Purchases, sales, issuances and settlements	10	3	13	8
Transfers in and/or (out of ) Level 3	26	(26)	56	(31)
Fair Value	77	8	77	8
Equity securities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair Value	124	103	112	104
Total Realized/Unrealized Gains (Losses) Included in Net Income	(6)	6	10	13
Total Realized/Unrealized Gains (Losses) Included in Other Comprehensive Income	0	0	0	0
Purchases, sales, issuances and settlements	(11)	1	(15)	(7)
Transfers in and/or (out of ) Level 3	0	0	0	0
Fair Value	107	110	107	110
Mortgage loans
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair Value	357		0
Total Realized/Unrealized Gains (Losses) Included in Net Income	(7)		(10)
Total Realized/Unrealized Gains (Losses) Included in Other Comprehensive Income	0		0
Purchases, sales, issuances and settlements	158		518
Transfers in and/or (out of ) Level 3	0		0
Fair Value	508		508
Limited partnerships
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair Value	1	1	1	1
Total Realized/Unrealized Gains (Losses) Included in Net Income	0	0	0	0
Total Realized/Unrealized Gains (Losses) Included in Other Comprehensive Income	0	0	0	0
Purchases, sales, issuances and settlements	0	0	0	0
Transfers in and/or (out of ) Level 3	0	0	0	0
Fair Value	1	1	1	1
GMIB reinsurance recoverable
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair Value	232	267	262	340
Total Realized/Unrealized Gains (Losses) Included in Net Income	(25)	11	(55)	(62)
Total Realized/Unrealized Gains (Losses) Included in Other Comprehensive Income	0	0	0	0
Purchases, sales, issuances and settlements	0	0	0	0
Transfers in and/or (out of ) Level 3	0	0	0	0
Fair Value	207	278	207	278
Policy loans
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair Value	3,485	3,538	3,467	3,455
Total Realized/Unrealized Gains (Losses) Included in Net Income	(27)	(136)	109	(11)
Total Realized/Unrealized Gains (Losses) Included in Other Comprehensive Income	0	0	0	0
Purchases, sales, issuances and settlements	29	86	(89)	44
Transfers in and/or (out of ) Level 3	0	0	0	0
Fair Value	$ 3,487	$ 3,488	$ 3,487	$ 3,488

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Fair Value Measurements - Purchases, Sales, Issuances and Settlements (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases, (Sales), Issuances, (Settlements) [Abstract]
Purchases	$ 172	$ 4	$ 535	$ 10
Sales	(15)	0	(19)	(9)
Issuances	74	156	105	192
Settlements	(45)	(70)	(194)	(148)
Total	186	90	427	45
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Purchases, (Sales), Issuances, (Settlements) [Abstract]
Total	0
Funds withheld payable under reinsurance treaties
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Purchases, (Sales), Issuances, (Settlements) [Abstract]
Purchases	0	0	0	0
Sales	0	0	0	0
Issuances	(79)	(187)	(111)	(398)
Settlements	49	101	207	352
Total	(30)	(86)	96	(46)
Debt securities | Corporate securities
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases, (Sales), Issuances, (Settlements) [Abstract]
Purchases	12	3	15	9
Sales	(2)	0	(2)	(1)
Issuances	0	0	0	0
Settlements	0	0	0	0
Total	10	3	13	8
Equity securities
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases, (Sales), Issuances, (Settlements) [Abstract]
Purchases	1	1	1	1
Sales	(12)	0	(16)	(8)
Issuances	0	0	0	0
Settlements	0	0	0	0
Total	(11)	1	(15)	(7)
Mortgage loans
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases, (Sales), Issuances, (Settlements) [Abstract]
Purchases	159		519
Sales	(1)		(1)
Issuances	0		0
Settlements	0		0
Total	158		518
Policy loans
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases, (Sales), Issuances, (Settlements) [Abstract]
Purchases	0	0	0	0
Sales	0	0	0	0
Issuances	74	156	105	192
Settlements	(45)	(70)	(194)	(148)
Total	$ 29	$ 86	$ (89)	$ 44

XML

Fair Value Measurements - Gains (Losses) by Location (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Embedded derivative liabilities
Fair Value, Measured on Recurring Basis, Gain (Loss) Included in Earnings [Line Items]
Included in Net Income	$ 1,085	$ (856)	$ 3,110	$ 2,500
Included in OCI	0	0	0	0
Funds withheld payable under reinsurance treaties
Fair Value, Measured on Recurring Basis, Gain (Loss) Included in Earnings [Line Items]
Included in Net Income	857	110	3,349	565
Included in OCI	0	0	0	0
Debt securities | Corporate securities
Fair Value, Measured on Recurring Basis, Gain (Loss) Included in Earnings [Line Items]
Included in Net Income	(5)	0	0	2
Included in OCI	(1)	0	(1)	0
Equity securities
Fair Value, Measured on Recurring Basis, Gain (Loss) Included in Earnings [Line Items]
Included in Net Income	(6)	6	10	13
Included in OCI	0	0	0	0
Mortgage loans
Fair Value, Measured on Recurring Basis, Gain (Loss) Included in Earnings [Line Items]
Included in Net Income	(7)	0	(10)	0
Included in OCI	0	0	0	0
GMIB reinsurance recoverable
Fair Value, Measured on Recurring Basis, Gain (Loss) Included in Earnings [Line Items]
Included in Net Income	(25)	11	(55)	(62)
Included in OCI	0	0	0	0
Policy loans
Fair Value, Measured on Recurring Basis, Gain (Loss) Included in Earnings [Line Items]
Included in Net Income	(27)	(136)	109	(11)
Included in OCI	$ 0	$ 0	$ 0	$ 0

XML

Fair Value Measurements - Financial Instruments Not Reported at Fair Value (Details) - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
Assets
Mortgage loans	$ 11,223	$ 11,482
Policy loans	959	1,008
FHLBI capital stock	146	125
Liabilities
Annuity reserves	36,897	36,318
Reserves for guaranteed investment contracts	1,162	894
Trust instruments supported by funding agreements	4,944	5,986
FHLB funding agreements	2,252	1,950
Funds withheld payable under reinsurance treaties	23,586	24,533
Debt	2,634	2,649
Securities lending payable	27	17
Repurchase agreements	0	1,572
Separate account liabilities	185,042	248,949
Limited partnership investments measured at NAV		715
Fair Value
Assets
Mortgage loans	10,585	11,910
Policy loans	959	1,008
FHLBI capital stock	146	125
Liabilities
Annuity reserves	32,099	46,045
Reserves for guaranteed investment contracts	1,124	923
Trust instruments supported by funding agreements	4,765	6,175
FHLB funding agreements	2,385	1,938
Funds withheld payable under reinsurance treaties	23,586	24,533
Debt	2,339	2,745
Securities lending payable	27	17
Repurchase agreements	0	1,572
Separate account liabilities	185,042	248,949
Fair Value | Level 1
Assets
Mortgage loans	0	0
Policy loans	0	0
FHLBI capital stock	146	125
Liabilities
Annuity reserves	0	0
Reserves for guaranteed investment contracts	0	0
Trust instruments supported by funding agreements	0	0
FHLB funding agreements	0	0
Funds withheld payable under reinsurance treaties	0	537
Debt	0	0
Securities lending payable	0	0
Repurchase agreements	0	0
Separate account liabilities	0	0
Fair Value | Level 2
Assets
Mortgage loans	0	0
Policy loans	0	0
FHLBI capital stock	0	0
Liabilities
Annuity reserves	0	0
Reserves for guaranteed investment contracts	0	0
Trust instruments supported by funding agreements	0	0
FHLB funding agreements	0	0
Funds withheld payable under reinsurance treaties	0	19,127
Debt	2,339	2,745
Securities lending payable	27	17
Repurchase agreements	0	1,572
Separate account liabilities	185,042	248,949
Fair Value | Level 3
Assets
Mortgage loans	10,585	11,910
Policy loans	959	1,008
FHLBI capital stock	0	0
Liabilities
Annuity reserves	32,099	46,045
Reserves for guaranteed investment contracts	1,124	923
Trust instruments supported by funding agreements	4,765	6,175
FHLB funding agreements	2,385	1,938
Funds withheld payable under reinsurance treaties	23,586	4,869
Debt	0	0
Securities lending payable	0	0
Repurchase agreements	0	0
Separate account liabilities	$ 0	$ 0

XML

Deferred Acquisition Costs - Rollforward (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward]
Balance, beginning of period	$ 14,249	$ 13,897
Deferrals of acquisition costs	497	592
Amortization	(2,276)	(551)
Unrealized investment (gains) losses	327	79
Balance, end of period	$ 12,797	$ 14,017

XML

Reinsurance - Narrative (Details) $ in Millions		9 Months Ended
	Jun. 01, 2020 USD ($)	Sep. 30, 2022 USD ($) treaty
Athene | Letter of credit
Effects of Reinsurance [Line Items]
Maximum borrowing capacity	$ 1,200
Trust account assets		$ 254
Athene
Effects of Reinsurance [Line Items]
Reinsurance quota share basis	100.00%
Reinsurance agreement, ceding commission	$ 1,200
SRZ
Effects of Reinsurance [Line Items]
Number of retro treaties | treaty		3
Coinsurance percentage		100.00%

XML

Reinsurance - Assets and Liabilities Held in Support of Reserves (Details) - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
Assets
Total assets, net	$ 24,059	$ 28,892
Liabilities
Total liabilities	23,900	29,007
Derivatives related to funds withheld under reinsurance treaties
Liabilities
Net fair value, derivative asset (liability)	3,475	(83)
Funds withheld embedded derivative | Derivatives related to funds withheld under reinsurance treaties
Liabilities
Net fair value, derivative asset (liability)	3,332	(120)
Debt securities, available-for-sale
Assets
Total assets, net	13,919	19,094
Debt securities, at fair value under the fair value option
Assets
Total assets, net	158	164
Equity securities
Assets
Total assets, net	84	116
Mortgage loans
Assets
Total assets, net	4,346	4,739
Mortgage loans, at fair value under the fair value option
Assets
Total assets, net	508	0
Policy loans
Assets
Total assets, net	3,500	3,483
Freestanding derivative instruments, net
Assets
Total assets, net	143	37
Other invested assets
Assets
Total assets, net	869	715
Cash and cash equivalents
Assets
Total assets, net	509	438
Accrued investment income
Assets
Total assets, net	169	162
Other assets and liabilities, net
Assets
Total assets, net	(146)	(56)
Funds held under reinsurance treaties
Liabilities
Total liabilities	$ 23,900	$ 29,007

XML

Reinsurance - Sources of Income Related to Funds Withheld Under Reinsurance Treaties (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Effects of Reinsurance [Line Items]
Net investment income	$ 640	$ 837	$ 2,022	$ 2,568
Funds withheld assets
Effects of Reinsurance [Line Items]
Total investment income on funds withheld assets	334	326	1,002	967
Other investment expenses on funds withheld assets	(21)	(26)	(65)	(83)
Net investment income	313	300	937	884
Debt securities | Funds withheld assets
Effects of Reinsurance [Line Items]
Total investment income on funds withheld assets	178	184	508	581
Debt securities, at fair value under the fair value option | Funds withheld assets
Effects of Reinsurance [Line Items]
Total investment income on funds withheld assets	(3)	(1)	(11)	(2)
Equity securities | Funds withheld assets
Effects of Reinsurance [Line Items]
Total investment income on funds withheld assets	(3)	1	(28)	4
Mortgage loans | Funds withheld assets
Effects of Reinsurance [Line Items]
Total investment income on funds withheld assets	59	49	160	127
Mortgage loans, at fair value under the fair value option | Funds withheld assets
Effects of Reinsurance [Line Items]
Total investment income on funds withheld assets	(7)	0	(10)	0
Policy loans | Funds withheld assets
Effects of Reinsurance [Line Items]
Total investment income on funds withheld assets	77	76	236	238
Limited partnerships | Funds withheld assets
Effects of Reinsurance [Line Items]
Total investment income on funds withheld assets	23	16	125	17
Other investment income | Funds withheld assets
Effects of Reinsurance [Line Items]
Total investment income on funds withheld assets	$ 0	$ 0	$ 1	$ 0

XML

Reinsurance - Gains and Losses on Funds Withheld Reinsurance Treaties (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Available-for-sale securities
Realized gains on sale	$ 3	$ 28	$ 32	$ 149
Realized losses on sale	(57)	(1)	(298)	(59)
Credit loss expense on mortgage loans	1	39	15	83
Net gains (losses) on derivative instruments			4,362	(1,413)
Net gains (losses) on funds withheld payable under reinsurance treaties			2,660	15
Embedded derivative gain (loss)	1,770	(1,166)	7,974	(805)
Funds withheld assets
Available-for-sale securities
Realized gains on sale	1	81	41	339
Realized losses on sale	(8)	(1)	(39)	(14)
Credit loss expense	7	(1)	(33)	(2)
Credit loss expense on mortgage loans	6	25	17	21
Other	(43)	(20)	(102)	(32)
Net gains (losses) on non-derivative investments	(37)	84	(116)	312
Net gains (losses) on derivative instruments	76	34	160	53
Net gains (losses) on funds withheld payable under reinsurance treaties	516	(233)	2,616	(350)
Total net gains (losses) on derivatives and investments	555	(115)	2,660	15
Derivatives related to funds withheld under reinsurance treaties
Available-for-sale securities
Total net gains (losses) on derivatives and investments	555	(115)	2,660	15
Embedded derivative gain (loss)	900	135	3,612	608
Derivatives related to funds withheld under reinsurance treaties | Funds withheld embedded derivative
Available-for-sale securities
Embedded derivative gain (loss)	$ 824	$ 101	$ 3,452	$ 555

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Reinsurance - Components of Reinsurance Recoverable (Details) - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
Reserves:
Claims liability and other	$ 796	$ 863
Total	30,796	33,126
Guaranteed minimum income benefits
Reserves:
Reserves	207	262
Other annuity benefits
Reserves:
Reserves	23,506	25,625
Life
Reserves:
Reserves	5,753	5,829
Accident and health
Reserves:
Reserves	$ 534	$ 547

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Reserves for Future Policy Benefits and Claims Payable and Other Contract Holder Funds - Narrative (Details) - USD ($)		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2022	Dec. 31, 2021
Net Amount at Risk by Product and Guarantee [Line Items]
Debt carrying value	$ 2,634,000,000	$ 2,634,000,000	$ 2,649,000,000
Federal Home Loan Bank of Indianapolis ("FHLBI") capital stock	146,000,000	146,000,000	125,000,000
Funding agreements	2,300,000,000	2,300,000,000	2,000,000,000.0
Fair Value
Net Amount at Risk by Product and Guarantee [Line Items]
Federal Home Loan Bank of Indianapolis ("FHLBI") capital stock	146,000,000	146,000,000	125,000,000
Medium term notes | Global Medium Term Note
Net Amount at Risk by Product and Guarantee [Line Items]
Debt face amount	27,000,000,000	27,000,000,000
Debt carrying value	$ 4,900,000,000	$ 4,900,000,000	$ 6,000,000,000.0
Interest-sensitive life
Net Amount at Risk by Product and Guarantee [Line Items]
Percentage of account values correspond to crediting rates that are at minimum guaranteed interest rates	80.00%	80.00%	80.00%
Annuity
Net Amount at Risk by Product and Guarantee [Line Items]
Percentage of account values correspond to crediting rates that are at minimum guaranteed interest rates	94.00%	94.00%	94.00%
Minimum
Net Amount at Risk by Product and Guarantee [Line Items]
Interest rate assumptions		2.50%
Minimum | Interest-sensitive life
Net Amount at Risk by Product and Guarantee [Line Items]
Minimum guaranteed rates	2.50%
Minimum | Fixed annuity
Net Amount at Risk by Product and Guarantee [Line Items]
Minimum guaranteed rates	1.00%
Maximum
Net Amount at Risk by Product and Guarantee [Line Items]
Interest rate assumptions		6.00%
Maximum | Interest-sensitive life
Net Amount at Risk by Product and Guarantee [Line Items]
Minimum guaranteed rates	6.00%
Maximum | Fixed annuity
Net Amount at Risk by Product and Guarantee [Line Items]
Minimum guaranteed rates	5.50%
Average | Interest-sensitive life
Net Amount at Risk by Product and Guarantee [Line Items]
Minimum guaranteed rates	4.68%
Average | Fixed annuity
Net Amount at Risk by Product and Guarantee [Line Items]
Minimum guaranteed rates	1.94%

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Reserves for Future Policy Benefits and Claims Payable and Other Contract Holder Funds - Reserves for Future Policy Benefits and Claims Payable Balances (Details) - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
Insurance [Abstract]
Traditional life	$ 4,030	$ 4,262
Guaranteed benefits	3,529	5,477
Claims payable	977	1,050
Accident and health	1,171	1,204
Group payout annuities	4,660	4,895
Life contingent payouts	1,160	1,152
Other	603	627
Total	$ 16,130	$ 18,667

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Reserves for Future Policy Benefits and Claims Payable and Other Contract Holder Funds - Liabilities for Other Contract Holder Funds Balances (Details) - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
Fair Value, Separate Account Investment [Line Items]
Total	$ 185,042	$ 248,949
Embedded derivative liabilities	493	4,071
Level 3
Fair Value, Separate Account Investment [Line Items]
Embedded derivative liabilities	(484)	2,626
RILA embedded derivatives | Level 3
Fair Value, Separate Account Investment [Line Items]
Embedded derivative liabilities	10	6
Fixed index annuity embedded derivatives | Level 3
Fair Value, Separate Account Investment [Line Items]
Embedded derivative liabilities	967	1,439
Other contract holder funds
Fair Value, Separate Account Investment [Line Items]
Total	58,174	58,726
Other contract holder funds | Interest-sensitive life
Fair Value, Separate Account Investment [Line Items]
Total	11,336	11,553
Other contract holder funds | Variable annuity fixed option
Fair Value, Separate Account Investment [Line Items]
Total	10,751	9,751
Other contract holder funds | RILA
Fair Value, Separate Account Investment [Line Items]
Total	1,235	110
Other contract holder funds | Fixed annuity
Fair Value, Separate Account Investment [Line Items]
Total	14,035	14,960
Other contract holder funds | Fixed index annuity
Fair Value, Separate Account Investment [Line Items]
Total	12,279	13,333
Other contract holder funds | GICs, funding agreements and FHLB advances
Fair Value, Separate Account Investment [Line Items]
Total	8,358	8,830
Other contract holder funds | Other
Fair Value, Separate Account Investment [Line Items]
Total	$ 180	$ 189

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Reserves for Future Policy Benefits and Claims Payable and Other Contract Holder Funds - Distribution of Fixed Rate Annuities' Account Values (Details) - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
Effects of Reinsurance [Line Items]
Subtotal	$ 13,262	$ 12,188
Ceded reinsurance	22,909	24,956
Total	36,171	37,144
1.0%
Effects of Reinsurance [Line Items]
Subtotal	7,492	6,424
>1.0% - 2.0%
Effects of Reinsurance [Line Items]
Subtotal	259	272
>2.0% - 3.0%
Effects of Reinsurance [Line Items]
Subtotal	4,593	4,550
>3.0% - 4.0%
Effects of Reinsurance [Line Items]
Subtotal	573	594
>4.0% - 5.0%
Effects of Reinsurance [Line Items]
Subtotal	273	276
>5.0% - 5.5%
Effects of Reinsurance [Line Items]
Subtotal	72	72
Fixed
Effects of Reinsurance [Line Items]
Subtotal	2,305	2,268
Ceded reinsurance	11,141	12,086
Total	13,446	14,354
Fixed | 1.0%
Effects of Reinsurance [Line Items]
Subtotal	256	156
Fixed | >1.0% - 2.0%
Effects of Reinsurance [Line Items]
Subtotal	51	57
Fixed | >2.0% - 3.0%
Effects of Reinsurance [Line Items]
Subtotal	1,080	1,113
Fixed | >3.0% - 4.0%
Effects of Reinsurance [Line Items]
Subtotal	573	594
Fixed | >4.0% - 5.0%
Effects of Reinsurance [Line Items]
Subtotal	273	276
Fixed | >5.0% - 5.5%
Effects of Reinsurance [Line Items]
Subtotal	72	72
Fixed Index
Effects of Reinsurance [Line Items]
Subtotal	511	463
Ceded reinsurance	11,768	12,870
Total	12,279	13,333
Fixed Index | 1.0%
Effects of Reinsurance [Line Items]
Subtotal	345	279
Fixed Index | >1.0% - 2.0%
Effects of Reinsurance [Line Items]
Subtotal	0	1
Fixed Index | >2.0% - 3.0%
Effects of Reinsurance [Line Items]
Subtotal	166	183
Fixed Index | >3.0% - 4.0%
Effects of Reinsurance [Line Items]
Subtotal	0	0
Fixed Index | >4.0% - 5.0%
Effects of Reinsurance [Line Items]
Subtotal	0	0
Fixed Index | >5.0% - 5.5%
Effects of Reinsurance [Line Items]
Subtotal	0	0
RILA
Effects of Reinsurance [Line Items]
Subtotal	12	1
Ceded reinsurance	0	0
Total	12	1
RILA | 1.0%
Effects of Reinsurance [Line Items]
Subtotal	12	1
RILA | >1.0% - 2.0%
Effects of Reinsurance [Line Items]
Subtotal	0	0
RILA | >2.0% - 3.0%
Effects of Reinsurance [Line Items]
Subtotal	0	0
RILA | >3.0% - 4.0%
Effects of Reinsurance [Line Items]
Subtotal	0	0
RILA | >4.0% - 5.0%
Effects of Reinsurance [Line Items]
Subtotal	0	0
RILA | >5.0% - 5.5%
Effects of Reinsurance [Line Items]
Subtotal	0	0
Variable
Effects of Reinsurance [Line Items]
Subtotal	10,434	9,456
Ceded reinsurance	0	0
Total	10,434	9,456
Variable | 1.0%
Effects of Reinsurance [Line Items]
Subtotal	6,879	5,988
Variable | >1.0% - 2.0%
Effects of Reinsurance [Line Items]
Subtotal	208	214
Variable | >2.0% - 3.0%
Effects of Reinsurance [Line Items]
Subtotal	3,347	3,254
Variable | >3.0% - 4.0%
Effects of Reinsurance [Line Items]
Subtotal	0	0
Variable | >4.0% - 5.0%
Effects of Reinsurance [Line Items]
Subtotal	0	0
Variable | >5.0% - 5.5%
Effects of Reinsurance [Line Items]
Subtotal	$ 0	$ 0

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Reserves for Future Policy Benefits and Claims Payable and Other Contract Holder Funds - Distribution of Interest Sensitive Life Business Account Values (Details) - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
Effects of Reinsurance [Line Items]
Subtotal	$ 7,114	$ 7,331
Retro treaties	4,222	4,222
Total	11,336	11,553
>2.0% - 3.0%
Effects of Reinsurance [Line Items]
Subtotal	244	252
>3.0% - 4.0%
Effects of Reinsurance [Line Items]
Subtotal	2,657	2,736
>4.0% - 5.0%
Effects of Reinsurance [Line Items]
Subtotal	2,306	2,381
>5.0% - 6.0%
Effects of Reinsurance [Line Items]
Subtotal	$ 1,907	$ 1,962

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Certain Nontraditional Long-Duration Contracts and Variable Annuity Guarantees - Net Amount at Risk (Details) - USD ($) $ in Millions	9 Months Ended	12 Months Ended
	Sep. 30, 2022	Dec. 31, 2021
Net Amount at Risk by Product and Guarantee [Line Items]
Compound interest rate based on simple interest rate of 5%	4.10%
Compound interest rate based on simple interest rate of 8%	6.00%
Compound interest rate typical period	10 years
GMDB | Return of net deposits plus a minimum return
Net Amount at Risk by Product and Guarantee [Line Items]
Return of deposits plus a minimum return, account value	$ 143,677	$ 194,060
Return of deposits plus a minimum return, net amount at risk	$ 11,321	$ 2,124
Return of deposits plus a minimum return, weighted average attained age	69 years 2 months 12 days	68 years 8 months 12 days
GMDB | Highest specified anniversary account value minus withdrawals post-anniversary
Net Amount at Risk by Product and Guarantee [Line Items]
Return of deposits plus a minimum return, account value	$ 10,646	$ 14,806
Return of deposits plus a minimum return, net amount at risk	$ 3,097	$ 93
Return of deposits plus a minimum return, weighted average attained age	70 years 4 months 24 days	69 years 9 months 18 days
GMDB | Combination net deposits plus minimum return, highest specified anniversary account value minus withdrawals post-anniversary
Net Amount at Risk by Product and Guarantee [Line Items]
Return of deposits plus a minimum return, account value	$ 7,276	$ 9,896
Return of deposits plus a minimum return, net amount at risk	$ 2,748	$ 522
Return of deposits plus a minimum return, weighted average attained age	72 years 2 months 12 days	71 years 10 months 24 days
GMDB | Minimum | Return of net deposits plus a minimum return
Net Amount at Risk by Product and Guarantee [Line Items]
Return of deposits plus a minimum return, minimum return	0.00%	0.00%
GMDB | Minimum | Combination net deposits plus minimum return, highest specified anniversary account value minus withdrawals post-anniversary
Net Amount at Risk by Product and Guarantee [Line Items]
Return of deposits plus a minimum return, minimum return	0.00%	0.00%
GMDB | Maximum | Return of net deposits plus a minimum return
Net Amount at Risk by Product and Guarantee [Line Items]
Return of deposits plus a minimum return, minimum return	6.00%	6.00%
GMDB | Maximum | Combination net deposits plus minimum return, highest specified anniversary account value minus withdrawals post-anniversary
Net Amount at Risk by Product and Guarantee [Line Items]
Return of deposits plus a minimum return, minimum return	6.00%	6.00%
GMWB - Premium only | Return of net deposits plus a minimum return
Net Amount at Risk by Product and Guarantee [Line Items]
Return of deposits plus a minimum return, minimum return	0.00%	0.00%
Return of deposits plus a minimum return, account value	$ 2,047	$ 2,937
Return of deposits plus a minimum return, net amount at risk	86	7
GMWB | Return of net deposits plus a minimum return
Net Amount at Risk by Product and Guarantee [Line Items]
Return of deposits plus a minimum return, account value	162	245
Return of deposits plus a minimum return, net amount at risk	17	8
GMWB | Highest specified anniversary account value minus withdrawals post-anniversary
Net Amount at Risk by Product and Guarantee [Line Items]
Return of deposits plus a minimum return, account value	831	643
Return of deposits plus a minimum return, net amount at risk	169	44
GMWB | Combination net deposits plus minimum return, highest specified anniversary account value minus withdrawals post-anniversary
Net Amount at Risk by Product and Guarantee [Line Items]
Return of deposits plus a minimum return, account value	134,190	181,457
Return of deposits plus a minimum return, net amount at risk	$ 48,276	$ 4,295
GMWB | Minimum | Return of net deposits plus a minimum return
Net Amount at Risk by Product and Guarantee [Line Items]
Return of deposits plus a minimum return, minimum return	0.00%	0.00%
GMWB | Minimum | Combination net deposits plus minimum return, highest specified anniversary account value minus withdrawals post-anniversary
Net Amount at Risk by Product and Guarantee [Line Items]
Return of deposits plus a minimum return, minimum return	0.00%	0.00%
GMWB | Maximum | Return of net deposits plus a minimum return
Net Amount at Risk by Product and Guarantee [Line Items]
Return of deposits plus a minimum return, minimum return	5.00%	5.00%
GMWB | Maximum | Combination net deposits plus minimum return, highest specified anniversary account value minus withdrawals post-anniversary
Net Amount at Risk by Product and Guarantee [Line Items]
Return of deposits plus a minimum return, minimum return	8.00%	8.00%
GMWB - Highest anniversary only | Highest specified anniversary account value minus withdrawals post-anniversary
Net Amount at Risk by Product and Guarantee [Line Items]
Return of deposits plus a minimum return, account value	$ 2,819	$ 3,919
Return of deposits plus a minimum return, net amount at risk	723	33
GMIB | Combination net deposits plus minimum return, highest specified anniversary account value minus withdrawals post-anniversary
Net Amount at Risk by Product and Guarantee [Line Items]
Return of deposits plus a minimum return, account value	1,156	1,662
Return of deposits plus a minimum return, net amount at risk	$ 827	$ 463
Return of deposits plus a minimum return, average period until expected annuitization	6 months	6 months
GMIB | Minimum | Combination net deposits plus minimum return, highest specified anniversary account value minus withdrawals post-anniversary
Net Amount at Risk by Product and Guarantee [Line Items]
Return of deposits plus a minimum return, minimum return	0.00%	0.00%
GMIB | Maximum | Combination net deposits plus minimum return, highest specified anniversary account value minus withdrawals post-anniversary
Net Amount at Risk by Product and Guarantee [Line Items]
Return of deposits plus a minimum return, minimum return	6.00%	6.00%

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Certain Nontraditional Long-Duration Contracts and Variable Annuity Guarantees - Separate Account Balances (Details) - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
Fair Value, Separate Account Investment [Line Items]
Total	$ 162,161	$ 219,324
Equity
Fair Value, Separate Account Investment [Line Items]
Total	110,764	154,368
Bond
Fair Value, Separate Account Investment [Line Items]
Total	15,818	20,207
Balanced
Fair Value, Separate Account Investment [Line Items]
Total	33,221	43,185
Money market
Fair Value, Separate Account Investment [Line Items]
Total	$ 2,358	$ 1,564

XML

Certain Nontraditional Long-Duration Contracts and Variable Annuity Guarantees - GMDB Liabilities in the General Account (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Movement in Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross [Roll Forward]
Balance as of beginning of year	$ 1,370	$ 1,418
Incurred guaranteed benefits	1,147	173
Paid guaranteed benefits	(146)	(78)
Balance as of end of period	$ 2,371	$ 1,513

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Certain Nontraditional Long-Duration Contracts and Variable Annuity Guarantees - Narrative (Details) - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
Long-Duration Contracts, Assumptions by Product and Guarantee [Line Items]
GMWB reserve liability (asset)	$ (484)	$ 2,626
GMWB with guaranteed payments reserve liability	359	196
Life contingent payouts	1,160	1,152
Lifetime income rider liability	$ 53	$ 37
Discount Rate Period, 2020 And Later Issues | Measurement Input, Discount Rate
Long-Duration Contracts, Assumptions by Product and Guarantee [Line Items]
Discount rate	7.15%	7.15%
Discount Rate Period, 2013 Through 2019 Issues | Measurement Input, Discount Rate
Long-Duration Contracts, Assumptions by Product and Guarantee [Line Items]
Discount rate	7.40%	7.40%
Discount Rate Period, 2012 And Prior Issues | Measurement Input, Discount Rate
Long-Duration Contracts, Assumptions by Product and Guarantee [Line Items]
Discount rate	8.40%	8.40%
GMDB
Long-Duration Contracts, Assumptions by Product and Guarantee [Line Items]
Investment performance rate	7.15%	7.15%
GMDB | Minimum
Long-Duration Contracts, Assumptions by Product and Guarantee [Line Items]
Mortality rate	38.00%	38.00%
Lapse rate	0.30%	0.30%
GMDB | Maximum
Long-Duration Contracts, Assumptions by Product and Guarantee [Line Items]
Mortality rate	100.00%	100.00%
Lapse rate	27.90%	27.90%
GMIB
Long-Duration Contracts, Assumptions by Product and Guarantee [Line Items]
Life contingent payouts	$ 153	$ 78
Insurance benefits | Minimum | Measurement Input, Discount Rate
Long-Duration Contracts, Assumptions by Product and Guarantee [Line Items]
Measurement input	30,000.0	0.030
Insurance benefits | Maximum | Measurement Input, Discount Rate
Long-Duration Contracts, Assumptions by Product and Guarantee [Line Items]
Measurement input	0.053	0.055

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Certain Nontraditional Long-Duration Contracts and Variable Annuity Guarantees - Insurance and Annuitization Benefits (Details) - USD ($) $ in Millions	9 Months Ended	12 Months Ended
	Sep. 30, 2022	Dec. 31, 2021	Sep. 30, 2021	Dec. 31, 2020
Net Amount at Risk by Product and Guarantee [Line Items]
Liability	$ 2,371	$ 1,370	$ 1,513	$ 1,418
Insurance benefits
Net Amount at Risk by Product and Guarantee [Line Items]
Liability	954	943
Net Amount at Risk	$ 17,676	$ 18,506
Weighted Average attained Age	64 years 7 months 6 days	64 years
Account balance adjustments
Net Amount at Risk by Product and Guarantee [Line Items]
Liability	$ 145	$ 141

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Long-Term Debt - Carrying Values (Details) - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
Schedule of Long Term and Short Term Debt Instruments [Line Items]
Total long-term debt	$ 2,634	$ 2,649
Term loan due 2023 | Term loan
Schedule of Long Term and Short Term Debt Instruments [Line Items]
Total long-term debt	0	751
Senior Notes | Senior Notes due 2023
Schedule of Long Term and Short Term Debt Instruments [Line Items]
Total long-term debt	597	596
Senior Notes | Senior Notes due 2027
Schedule of Long Term and Short Term Debt Instruments [Line Items]
Total long-term debt	397	0
Senior Notes | Senior Notes due 2031
Schedule of Long Term and Short Term Debt Instruments [Line Items]
Total long-term debt	493	495
Senior Notes | Senior Notes due 2032
Schedule of Long Term and Short Term Debt Instruments [Line Items]
Total long-term debt	347	0
Senior Notes | Senior Notes due 2051
Schedule of Long Term and Short Term Debt Instruments [Line Items]
Total long-term debt	488	490
Surplus notes
Schedule of Long Term and Short Term Debt Instruments [Line Items]
Total long-term debt	250	250
FHLBI bank loans
Schedule of Long Term and Short Term Debt Instruments [Line Items]
Total long-term debt	$ 62	$ 67

XML

Long-Term Debt - Maturity (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2022	Dec. 31, 2021
Debt Disclosure [Abstract]
2023	$ 597
2024	0
2025	0
2026	0
2027 and thereafter	2,037
Total	$ 2,634	$ 2,649
Document Period End Date	Sep. 30, 2022

XML

Long-Term Debt - Narrative (Details) - USD ($)	Jun. 08, 2022	Nov. 23, 2021	Sep. 10, 2021	Feb. 22, 2021
Schedule of Long Term and Short Term Debt Instruments [Line Items]
Aggregate principal amount borrowed			$ 2,400,000,000
Revolving credit facility
Schedule of Long Term and Short Term Debt Instruments [Line Items]
Maximum borrowing capacity				$ 1,000,000,000
Term loan due 2023 | Term loan
Schedule of Long Term and Short Term Debt Instruments [Line Items]
Repayment of debt	$ 750,000,000
Maximum borrowing capacity				1,000,000,000
Aggregate principal amount borrowed			750,000,000
Term loan due 2022 | Term loan
Schedule of Long Term and Short Term Debt Instruments [Line Items]
Repayment of debt		$ 1,600,000,000
Maximum borrowing capacity				$ 1,700,000,000
Aggregate principal amount borrowed			$ 1,600,000,000
Senior Notes
Schedule of Long Term and Short Term Debt Instruments [Line Items]
Debt face amount	750,000,000	1,600,000,000
Senior Notes | Senior Notes due 2023
Schedule of Long Term and Short Term Debt Instruments [Line Items]
Debt face amount		$ 600,000,000
Stated interest rate		1.125%
Senior Notes | Senior Notes due 2027
Schedule of Long Term and Short Term Debt Instruments [Line Items]
Debt face amount	$ 400,000,000
Stated interest rate	5.17%
Senior Notes | Senior Notes due 2031
Schedule of Long Term and Short Term Debt Instruments [Line Items]
Debt face amount		$ 500,000,000
Stated interest rate		3.125%
Senior Notes | Senior Notes due 2032
Schedule of Long Term and Short Term Debt Instruments [Line Items]
Debt face amount	$ 350,000,000
Stated interest rate	5.67%
Senior Notes | Senior Notes due 2051
Schedule of Long Term and Short Term Debt Instruments [Line Items]
Debt face amount		$ 500,000,000
Stated interest rate		4.00%

XML

Federal Home Loan Bank Advances (Details) - USD ($)	Sep. 30, 2022	Dec. 31, 2021
Other Liabilities Disclosure [Abstract]
Federal Home Loan Bank advances	$ 0	$ 0

XML

Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Income Tax Disclosure [Abstract]
Effective income tax rate	27.40%	(8.60%)	20.00%	16.50%	15.90%
Deferred tax assets, valuation allowance	$ 179		$ 499

XML

Commitments and Contingencies (Details) - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
Unfunded partnership investment commitment
Other Commitments [Line Items]
Unfunded commitments	$ 1,577	$ 300
Unfunded loan and debt securities commitments
Other Commitments [Line Items]
Unfunded commitments	$ 1,401

XML

Other Related Party Transactions (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Related Party Transaction [Line Items]
Related party, expenses	$ 26	$ 8	$ 62	$ 24
Investment management fees | Affiliated entity
Related Party Transaction [Line Items]
Related party, revenue	7	9	25	28
Related party, expenses	$ 21	$ 26	$ 64	$ 80

XML

Operating Costs and Other Expenses (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Operating Costs And Other Expenses [Abstract]
Asset-based commission expenses	$ 242	$ 286	$ 767	$ 834
Other commission expenses	195	263	664	793
Sub-advisor expenses	80	101	252	289
General and administrative expenses	220	241	614	769
Deferrals of acquisition costs	(145)	(192)	(496)	(595)
Total operating costs and other expenses	$ 592	$ 699	$ 1,801	$ 2,090

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Accumulated Other Comprehensive Income (Loss) - Changes in Balance (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Balance beginning of period	$ 10,310	$ 10,990	$ 11,074	$ 9,923
Change in unrealized appreciation (depreciation) of investments	(2,383)	(415)	(9,254)	(2,068)
Change in unrealized appreciation (depreciation) - other	126	15	438	86
Change in deferred tax asset	313	86	1,413	429
Other comprehensive income (loss) before reclassifications	(1,944)	(314)	(7,403)	(1,553)
Reclassifications from AOCI, net of tax	(52)	(31)	(59)	(223)
Total other comprehensive income (loss)	(1,996)	(345)	(7,462)	(1,776)
Balance end of period	9,703	10,856	9,703	10,856
AOCI Including Portion Attributable to Noncontrolling Interest
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Balance beginning of period	(3,722)	2,390	1,744	3,821
Balance end of period	(5,718)	2,045	(5,718)	2,045
Funds withheld assets | AOCI Including Portion Attributable to Noncontrolling Interest
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Balance beginning of period			287
Balance end of period	$ (2,316)	$ 481	$ (2,316)	$ 481

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Accumulated Other Comprehensive Income (Loss) - Reclassifications (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Accumulated Other Comprehensive Income (Loss) [Line Items]
Net unrealized gain (loss)	$ 1,419	$ (1,379)	$ 6,891	$ (1,194)
Amortization of deferred acquisition costs			(2,276)	(551)
Reclassifications, before income taxes	2,027	252	8,064	3,299
Income tax expense (benefit)	559	(16)	1,606	515
Reclassifications, net of income taxes	1,468	268	6,458	2,784
Reclassification out of Accumulated Other Comprehensive Income
Accumulated Other Comprehensive Income (Loss) [Line Items]
Amortization of deferred acquisition costs	5	5	5	28
Reclassifications, before income taxes	(67)	(40)	(75)	(285)
Income tax expense (benefit)	(15)	(9)	(16)	(62)
Reclassifications, net of income taxes	(52)	(31)	(59)	(223)
Reclassification out of Accumulated Other Comprehensive Income | Net unrealized gain (loss)
Accumulated Other Comprehensive Income (Loss) [Line Items]
Net unrealized gain (loss)	(72)	(45)	(80)	(313)
Reclassification out of Accumulated Other Comprehensive Income | Net realized gain (loss) on investments
Accumulated Other Comprehensive Income (Loss) [Line Items]
Net unrealized gain (loss)	(47)	(45)	(85)	(313)
Reclassification out of Accumulated Other Comprehensive Income | Other impaired securities
Accumulated Other Comprehensive Income (Loss) [Line Items]
Net unrealized gain (loss)	$ (25)	$ 0	$ 5	$ 0

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Equity - Narrative (Details) $ / shares in Units, $ in Millions	Mar. 12, 2022 $ / shares shares	Feb. 01, 2022 shares	Dec. 13, 2021 $ / shares shares	Nov. 03, 2022 USD ($)	Sep. 30, 2022 vote class $ / shares shares	Feb. 28, 2022 USD ($)	Dec. 31, 2021 $ / shares shares
Class of Stock [Line Items]
Number of classes of common stock | class					2
Common stock, par value (in usd per share) | $ / shares					$ 0.01
Share repurchase authorized | $						$ 300
Common stock, conversion ratio		1	1
Subsequent Event
Class of Stock [Line Items]
Share repurchase remaining | $				$ 119
Class A common stock
Class of Stock [Line Items]
Common stock, par value (in usd per share) | $ / shares					$ 0.01		$ 0.01
Number of votes per share | vote					1
Common stock, authorized (in shares) | shares					900,000,000		900,000,000
Shares repurchased, price per share (in usd per share) | $ / shares			$ 37.01
Class A common stock | Prudential
Class of Stock [Line Items]
Shares repurchased (in shares) | shares			2,242,516
Class A common stock | Athene
Class of Stock [Line Items]
Shares repurchased (in shares) | shares	750,000		1,134,767
Shares repurchased, price per share (in usd per share) | $ / shares	$ 37.89
Stock issued upon conversion (in shares) | shares		638,861	725,623
Class B common stock
Class of Stock [Line Items]
Common stock, par value (in usd per share) | $ / shares							$ 0.01
Number of votes per share | vote					0.10
Common stock, authorized (in shares) | shares					0		100,000,000

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Equity - Share Repurchase Activities (Details) - USD ($) $ / shares in Units, $ in Millions	1 Months Ended	3 Months Ended				9 Months Ended	10 Months Ended	12 Months Ended
	Nov. 03, 2022	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Dec. 31, 2021	Sep. 30, 2022	Nov. 03, 2022	Dec. 31, 2021
Equity, Class of Treasury Stock [Line Items]
Total payments		$ 39				$ 279
Share repurchase program
Equity, Class of Treasury Stock [Line Items]
Shares repurchased (in shares)		1,200,000	1,870,854	3,433,610	5,778,649			5,778,649
Total payments		$ 39	$ 66	$ 140	$ 211			$ 211
Shares repurchased, price per share (in usd per share)		$ 32.75	$ 35.15	$ 40.84	$ 36.51			$ 36.51
Share repurchase program | Subsequent Event
Equity, Class of Treasury Stock [Line Items]
Shares repurchased (in shares)	792,105						7,296,569
Total payments	$ 25						$ 270
Shares repurchased, price per share (in usd per share)	$ 31.58						$ 37.04

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Equity - Changes in Common Shares (Details)	9 Months Ended
	Sep. 30, 2022 shares
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance, outstanding (in shares)	88,685,694
Share-based compensation programs (in shares)	1,485,712
Shares repurchased (in shares)	(6,504,464)
Ending balance, outstanding (in shares)	83,666,942
Common Stock Issued
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance, outstanding (in shares)	94,464,343
Share-based compensation programs (in shares)	9,675
Shares repurchased (in shares)	0
Ending balance, outstanding (in shares)	94,474,018
Treasury Stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance, outstanding (in shares)	(5,778,649)
Share-based compensation programs (in shares)	1,476,037
Shares repurchased (in shares)	(6,504,464)
Ending balance, outstanding (in shares)	(10,807,076)

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Equity - Dividends Paid (Details) - $ / shares	3 Months Ended
	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022
Equity [Abstract]
Dividends paid per share (in usd per share)	$ 0.55	$ 0.55	$ 0.55

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Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Earnings Per Share [Abstract]
Net income (loss) attributable to Jackson Financial Inc.	$ 1,479	$ 206	$ 6,407	$ 2,598
Weighted average shares of common stock outstanding - basic (in shares)	85,098,192	94,464,343	86,126,710	94,464,343
Dilutive common shares (in shares)	2,797,727	0	3,198,774	0
Weighted average shares of common stock outstanding - diluted (in shares)	87,895,919	94,464,343	89,325,484	94,464,343
Earnings per share—common stock
Basic (in usd per share)	$ 17.38	$ 2.18	$ 74.39	$ 27.50
Diluted (in usd per share)	$ 16.83	$ 2.18	$ 71.73	$ 27.50

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Revision and Reclassifications of Prior Period Financial Statements - Narrative (Details) $ in Millions	9 Months Ended
	Sep. 30, 2021 USD ($)
Accounting Changes and Error Corrections [Abstract]
Reclassification impacts in cash flows	$ 42

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Revision and Reclassifications of Prior Period Financial Statements - Condensed Consolidated Balance Sheets (Details) - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
Assets
Other assets	$ 1,846	$ 928
Total assets	302,970	375,559
Liabilities
Reserves for future policy benefits and claims payable	16,130	18,667
Other contract holder funds	58,174	58,726
Notes issued by consolidated VIEs, at fair value under fair value option	1,745	1,404
Other liabilities	2,352	2,540
Total liabilities	293,267	364,485
Total liabilities and equity	$ 302,970	375,559
As Previously Reported
Assets
Other assets		853
Total assets		375,484
Liabilities
Reserves for future policy benefits and claims payable		17,629
Other contract holder funds		59,689
Notes issued by consolidated VIEs, at fair value under fair value option		0
Other liabilities		3,944
Total liabilities		364,410
Total liabilities and equity		375,484
Impact of Revisions and Reclassifications
Assets
Other assets		75
Total assets		75
Liabilities
Reserves for future policy benefits and claims payable		1,038
Other contract holder funds		(963)
Notes issued by consolidated VIEs, at fair value under fair value option		1,404
Other liabilities		(1,404)
Total liabilities		75
Total liabilities and equity		75
As Revised
Assets
Other assets		928
Total assets		375,559
Liabilities
Reserves for future policy benefits and claims payable		18,667
Other contract holder funds		58,726
Notes issued by consolidated VIEs, at fair value under fair value option		1,404
Other liabilities		2,540
Total liabilities		364,485
Total liabilities and equity		$ 375,559

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Revision and Reclassifications of Prior Period Financial Statements - Condensed Consolidated Income Statements (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Revenues
Fee income	$ 1,908	$ 2,063	$ 5,854	$ 5,963
Premiums	36	37	105	115
Net investment income	640	837	2,022	2,568
Total revenues	4,022	1,575	14,932	7,522
Benefits and Expenses
Death, other policy benefits and change in policy reserves, net of deferrals	586	405	2,090	933
Interest credited on other contract holder funds, net of deferrals and amortization	224	209	628	630
Operating costs and other expenses, net of deferrals	592	699	1,801	2,090
Amortization of deferred acquisition costs	564	4	2,276	551
Total benefits and expenses	1,995	1,323	6,868	4,223
Net income (loss)	$ 1,468	268	$ 6,458	2,784
As Previously Reported
Revenues
Fee income		1,962		5,674
Premiums		35		100
Net investment income		852		2,576
Total revenues		1,487		7,226
Benefits and Expenses
Death, other policy benefits and change in policy reserves, net of deferrals		394		887
Interest credited on other contract holder funds, net of deferrals and amortization		217		657
Operating costs and other expenses, net of deferrals		614		1,812
Amortization of deferred acquisition costs		4		552
Total benefits and expenses		1,235		3,927
Net income (loss)		268		2,784
Impact of Revisions and Reclassifications
Revenues
Fee income		101		289
Premiums		2		15
Net investment income		(15)		(8)
Total revenues		88		296
Benefits and Expenses
Death, other policy benefits and change in policy reserves, net of deferrals		11		46
Interest credited on other contract holder funds, net of deferrals and amortization		(8)		(27)
Operating costs and other expenses, net of deferrals		85		278
Amortization of deferred acquisition costs		0		(1)
Total benefits and expenses		88		296
Net income (loss)		0		0
As Revised
Revenues
Fee income		2,063		5,963
Premiums		37		115
Net investment income		837		2,568
Total revenues		1,575		7,522
Benefits and Expenses
Death, other policy benefits and change in policy reserves, net of deferrals		405		933
Interest credited on other contract holder funds, net of deferrals and amortization		209		630
Operating costs and other expenses, net of deferrals		699		2,090
Amortization of deferred acquisition costs		4		551
Total benefits and expenses		1,323		4,223
Net income (loss)		$ 268		$ 2,784

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Subsequent Events (Details)	Nov. 07, 2022 $ / shares
Subsequent Event
Subsequent Event [Line Items]
Common stock dividend declared (in usd per share)	$ 0.55